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.

Eligible uses:

  • Land and building acquisition
  • Building construction or renovation
  • Machinery and equipment purchases
  • Related soft costs (e.g., title insurance, appraisals)

Eligible Businesses:

  • 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

Limitations:

  • 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.