Who/What Qualifies?

Who/What Qualifies?

Who qualifies for an SBA 504 loan?
The SBA 504 Loan Program is specifically designed for long term fixed-asset financing, primarily owner-occupied commercial/industrial real estate. Proceeds can be applied to these specific needs:

  • Purchase of Land and Improvements, including existing buildings, modernizing, renovating or converting existing facilities
  • New Construction
  • Purchase of Build-to-Suit Facilities
  • Purchase of New Long Term Machinery and Equipment (with a useful life of greater than 20 years for a 20-year term SBA loan or a useful life of greater than 10 years for a 10-year term SBA loan)
  • Refinance of existing conventional commercial loan meeting certain conditions (temporarily allowed until September 2012 – see more info on SBA 504 Refinance program

How can I get an SBA 504 loan for my business?
An SBA 504 loan is available to businesses that are:

  • An operating, for-profit business, organized as a Corporation, Sole Proprietorship, Partnership, LLC, etc.
  • Located within the U.S.
  • Your business and any affiliated entities combined must have a tangible net worth of less than $15 million, and two-year average after-tax profits of less than $5 million. Additionally, you must occupy at least 51% of the subject property for existing buildings (60% for ground-up construction).

The SBA 504 Loan Program is available to a wide range of businesses. California Statewide CDC representatives are always available to discuss your company and project and provide further guidance on eligibility. Please call us at 800-982-9192 or email us.