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Cafe Interior

SBA504 Loan Program

Eligibility

  • Established as a legal entity – corporation, partnership, sole proprietor, or limited liability company

  • Located in the United States

  • Net worth under $20 million and net profits under $6.5 million

  • Participation by another lender who finances up to 50% of project costs

  • Economic development goals must be achieved through the project financing

  • Owner-user of the project being financed must occupy at least 51% of the property for an existing building or 60% of a newly constructed building. Two or more unrelated small businesses can receive a SBA 504 loan if they combine to meet occupancy requirements.

  • Job creation of one (1) job for every $95,000 or one (1) job for $150,000 for manufacturers lent out with SBA funds (not required for rural areas, businesses owned by at least 51% women, minorities or veterans)

A small business is not eligible for an SBA loan if it is or has:

  • A not-for-profit

  • Engaged in lending, a passive holder of real estate and/or personal property, or a life insurance company – however, an insurance agency is eligible

  • Located in a foreign country or owned by aliens who do not have legal permanent resident status

  • Restrictions on patronage

  • A government-owned entity (exception for Native American tribes)

  • Engaged in promoting religion

  • A consumer and marketing cooperative (producer cooperatives are eligible)

  • Engaged in loan packaging

  • Owned by persons of poor character

  • Equity interest by lender, CDC, or associates in applicant concern

  • Provides prurient sexual material

  • Previously defaulted on a federal loan

  • Engaged in political or lobbying activities

  • A speculative business

Have more questions?
Book an appointment with a Loan Specialist!

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