Federal Financing through the Small Business Administration
504 Loan Program
The SBA 504 loan program provides long-term, fixed rate financing for expanding small and mid-sized businesses. Most for-profit businesses are eligible to apply. A 504 project includes a loan from a private lender financing 50 percent of the project costs, the SBA 504 financing up to 40 percent and the borrower contributing as little as 10% percent.
• Land and building acquisition
• Building construction or renovation
• Machinery and equipment purchases
• Related soft costs (e.g., title insurance, appraisals)
• Be organized and operating as a for-profit business
• Tangible net worth less than $15 million, and
• Average net profit after tax of less than $5 million the last two years
• Not have funds available from other sources
• Businesses can apply for up to $5 million or $5.5 million for eligible manufacturing projects and energy saving projects
• Tangible net worth less than $15 million, and average net profit after tax of less than $5 million the last two years
• Generally the business must create and/or retain one job for every $65,000 borrowed from the SBA 504 or the project must meet a public policy goal. It’s 100,000 per job for manufacturers
• Interest rates are competitive and typically below bank rates
Contact us to see how you qualify and to get started on your application today.