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SBA-504

What is the 504 loan program?
The 504 Loan Program offers extended, fixed-rate financing to support the expansion of businesses and the generation of employment opportunities.

These loans are accessible through Certified Development Companies (CDCs), local partners of the Small Business Administration (SBA) entrusted with the oversight of non-profit organizations and the advancement of economic development within their respective communities. CDCs are officially certified and supervised by the SBA.

The highest loan amount attainable under the 504 loan program is $5.5 million. In the case of specific energy-related projects, borrowers may secure a 504 loan of up to $5.5 million per project, with a cap of three projects, not exceeding a total of $16.5 million.

How can I utilize a 504 loan?
A 504 loan can be employed for various assets that foster business expansion and job creation. These assets encompass the acquisition or construction of:
· Preexisting structures or land
· Newly constructed facilities
· Long-term machinery and equipment

Additionally, it can be used for the enhancement or modernization of:
· Land, streets, utilities, parking lots, and landscaping
· Existing facilities

However, it is crucial to note that a 504 loan cannot be utilized for:
· Working capital or inventory
· The consolidation, repayment, or refinancing of existing debts
· Speculative ventures or investments in rental real estate

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