Who Qualifies?

The SBA 504 Loan program is for small business fixed-asset financing. More than 99% of privately held, for-profit companies are considered small businesses for 504 and SBA guaranty loan financing purposes. SBA 504 loans can be used for the following needs:

  • Land acquisition and site improvements
  • Purchase of existing or build to suit facilities
  • Construction of new facilities
  • Conversion, expansion, or renovation of existing facilities
  • Equipment and machinery with long life

How to Qualify

To qualify for an SBA 504 loan your clients must:

  • Be an operating for-profit business
  • Use the financing for a project located in the U.S.
  • Have a tangible net worth of less than $8.5 million and 2-year average profits after tax of less than $3 million (includes all affiliated entities)
  • Create jobs or meet a public policy or community development goal.
  • Owners can borrow $65,000 in SBA 504 funding for each job created within two years (certain public policy or community development goals allow job creation requirements to be waived).