1 What is the 504 Loan Program?

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  504 loans
  
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  What is the 504 loan program?
  
  The 504 loan program offers long-lasting, set rate funding for major set assets that promote service development and task production.
  
  504 loans are offered through Certified Development Companies (CDCs), SBA's community-based not-for-profit partners who promote economic development within their communities. CDCs are licensed and regulated by SBA.
  
  The maximum loan amount for a 504 loan is $5.5 million.
  
  Am I qualified?
  
  To be eligible for a 504 loan, your business needs to:
  
  - Operate as a for-profit company in the United States or its possessions.
• Have a concrete net worth of less than $20 million.
• Have a typical net earnings of less than $6.5 million after federal income taxes for the two years preceding your application
  
  Other basic eligibility standards consist of falling within SBA size guidelines, having actually qualified management expertise, a possible business plan, good character and the capability to repay the loan.
  
  Loans can not be made to companies engaged in not-for-profit, passive, or speculative activities. For extra information on eligibility requirements and loan application requirements, little companies and loan providers are motivated to call a Licensed Development Company in their area.
  
  How do I utilize a 504 loan?
  
  A 504 loan can be utilized for a series of properties that promote company development and job development. These include the purchase or construction of:
  
  - Existing structures or land.
• New centers.
• Long-term machinery and devices with a useful remaining life of a minimum of ten years, consisting of project-related AI-supported equipment or machinery for manufacturing products.
• Consolidating financial obligation under the conditions listed in 13 CFR 120.882, paragraph (e) and.
• Repaying or refinancing debt defined as "competent debt" under 13 CFR 120.882, paragraph (g)
  
  Or the enhancement or modernization of:
  
  - Land, streets, utilities, car park and landscaping.
• Existing centers
  
  A 504 loan can not be used for:
  
  - Working capital or inventory.
• Consolidating, paying back or refinancing debt that does not satisfy the meaning of "competent financial obligation" under 13 CFR 120.882, paragraphs (e) and (g). - Speculation or investment in rental realty. The financing of AI-related working capital, intellectual residential or commercial property, or consulting services soft costs
  
  What do I require to apply?
  
  504 loans are offered specifically through Certified Development Companies (CDCs). Find a CDC in your area to guarantee you are dealing with a certified lending institution. CDCs are distinctively qualified to understand 504 loan program policies, and will assist you navigate the lender channels to produce your task financing.
  
  Find a CDC near you
  
  Find Certified Development Companies (CDCs) authorized to provide 504 loans.
  
  How do I repay my 504 loan?
  
  Active 504 loans
  
  Loan repayment terms differ according to numerous aspects. Borrowers with active 504 loans can make payments through the Central Servicing Agent, generally by ACH regular monthly draws. Payments can also be made by wire or check.