SBA 504 Loan Eligibility
The 504 loan serves numerous expanding small to mid-sized businesses. It is available to individual business owners or multiple owners partnering on a project.
Kinds of Businesses Served (SBA 504 Loans)
|Auto and motorcycle dealerships|
|Auto repair shops|
|Heating and mechanical contractors|
|Hotels and motels|
|Restaurants and food service companies|
|Retail and wholesale companies|
Answer these questions to find out if your business is eligible:
- Are you a for-profit business?
- Has your average net profit after taxes been less than $5 million during the previous two year’s tax returns?
- Will this loan be used to finance the acquisition, construction or renovation of real estate or the purchase of equipment?
- If the loan is used to purchase a building, will your business occupy at least 51% of the space?
- If the loan will be used for ground-up construction, will your business occupy at least 60% of the building now and 80% long-term?
- All owners of 20% or more of your business, and a real estate holding company if it is formed, must be willing to guarantee the loan.
If you answered YES to all of these questions, you are likely eligible for a 504 loan. Contact one of our loan experts to get started!