The SBA’s 504 Loan Program is designed to help businesses finance the purchase of major fixed assets, such as land, buildings and/or equipment through longterm, fixed-rate financing.
SBA 504 applicants must
Applicant operates as a for profit company
Applicant must occupy at least 51% of building to be purchased (or 60% of new construction)
Operate in the United States
Have a tangible net worth <$15 million and an average net income <$5 million after taxes for the preceding two years.
Not be engaged in speculation or investment in rental real estate
Present a feasible business plan
HOW THE SBA 504 LOAN WORKS
USING THE SBA 504 LOAN
SBA 504 LOANS CAN BE USED FOR
Purchasing land, including existing buildings
Constructing, modernizing, renovating or converting facilities
