SBA 504 Loan Program
Size Standards
- Net worth must not exceed $7.5 million.
- Average net income over the last 2 years must not exceed $2.5 million.
Eligibility
- Business must be operated for profit.
- Business must be open to all on a nondiscriminatory basis.
- Business must be located in the United States or its possessions.
- Owners must be U.S. citizens or resident aliens.
- Business owner must be able to demonstrate repayment ability from earnings.
- Business must not be involved in investment real estate, religion, politics, or sex.
- Our representative will work with you to determine eligibility.
Loan Terms
- Loans are structured with no balloon payments
- Up to 50 percent first mortgage
- Up to 40 percent second mortgage provided by Certified Development Company ($250,000 to $4 million)
- At least 10 percent equity contribution
- Interest rates are fixed based on current market rates
- Loan term is based on use of proceeds
- First mortgage: Equipment–10 years; Real Estate–20-25 years
- Second mortgage: Equipment–10 years; Real Estate–20 years
- Personal guarantees are required from any owners of 20 percent or more of the business
- Collateral includes the real estate or machinery and equipment being financed
- Use of proceeds
- Purchase or renovation and expansion of owner-occupied real estate
- Purchase of machinery and equipment
