SBA 504 Loans for Commerical Real Estate & Equipment

The 504 Loan program offers small business financing for commercial real estate and equipment. This type of loan offers both immediate and long-term benefits, so you can focus on growing your business.

504 Loan Eligibility

To be eligible for a 504 Loan, your business must be operated for profit and fall within the size standards set by the SBA. Under the 504 Program, a business qualifies if it has a tangible net worth not more than $15 million, and an average net income of $5 million or less after federal income taxes for the preceding two years prior to application. Loans cannot be made to businesses engaged in nonprofit, passive or speculative activities. For additional information on eligibility criteria and loan application requirements, small business and lenders are encouraged to contact a Certified Development Company in their area.

Collateral
Generally, the project assets being financed are used as collateral. Personal guarantees from owners of 20% or more may also be required.

Interest Rates and Fees
Interest rates on 504 Loans are correlated with the current market rate for 5-year and 10-year U.S. Treasury issues. Loan maturities of 10 and 20 years are available. Fees may be financed with the loan.

For more information about SBA 504 loans, visit www.sba.gov