What is an SBA 504 Loan?

The SBA 504 Loan is a specialized financing option designed to help small business owners acquire fixed assets like real estate or large equipment at low, long-term interest rates. This loan is a collaborative effort between a Certified Development Company (CDC), the borrower, and a traditional lender. Its goal is to support economic development and job creation, making it an excellent choice for businesses ready to grow and expand.

With competitive terms and fixed rates, the SBA 504 Loan offers an affordable path to long-term investments in your business’s future.

Who Qualifies for an SBA 504 Loan?

To qualify, applicants must meet these criteria:

  • Small Business Size: Operate as a small business under SBA size
  • Purpose of Loan: Use the loan for eligible fixed asset purchases or
  • For-Profit Business: Must be a for-profit business operating in the S.
  • Job Creation: Show potential to create or retain jobs or meet public policy goals (e.g., energy efficiency).
  • Strong Financial Profile: Maintain good credit and demonstrate financial
  • Citizenship: Must be a US citizen or a Permanent Resident to

What Can an SBA 504 Loan Be Used For?

SBA 504 Loans are tailored for long-term investments, including:

  • Real Estate Acquisition or Construction: Purchase land, existing buildings, or fund new construction.
  • Renovation Projects: Modernize or improve facilities to support business
  • Equipment Purchases: Acquire large machinery or equipment critical to
  • Energy Efficiency Upgrades: Invest in renewable energy systems or energy-saving

What Can an SBA 504 Loan Not Be Used For?

While the loan is highly targeted, there are restrictions:
  • Working Capital: Cannot be used for day-to-day operational expenses or
  • Debt Refinancing: Only allowed if it meets specific SBA
  • Speculative Investments: Prohibited from funding high-risk or speculative
  • Non-Business Expenses: Cannot finance personal or non-business-related
  • Passive Income Properties: Ineligible for properties primarily generating passive income, like apartment buildings.

Why Choose an SBA 504 Loan?

The SBA 504 Loan provides:
  • Low, Fixed Interest Rates: Ideal for long-term
  • Flexible Terms: Designed for significant fixed asset
  • Economic Impact: Encourages job creation and energy efficiency

Ready to Invest in Your Business’s Future?

An SBA 504 Loan could be the key to unlocking your business’s growth potential. Our team is here to guide you through the process and help secure the funding you need.

Contact us today to learn how an SBA 504 Loan can help you expand your business!

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