SBA 504 LOAN

Purpose:

• The SBA 504 loan is to fund a business project(s) for the purchase, lease improvements, renovation and ground up construction of long term fixed assets for its business operations, which includes real estate and expansion.

• $5 million


• $5.5 million for Small Manufactures and Renewable Energy projects that will reduce energy consumption by 10%

• 10 years


• 20 years


• 25 years

• Operate as a for-profit company in the United States or its possessions


• Have a tangible net worth of less than $15 million


• Have an average net income of less than $5 million after federal income taxes for the two years preceding your application

• Existing Buildings – Business must occupy at least 51% of the project within one year of ownership


• New Construction – Business must occupy at least 60% of the project upon occupancy and 80% within 10 years.


• The borrower may form a real estate holding company that leases 100% to the operating business, which then subleases surplus space (up to 49%).

• Up to 90% for established businesses


• Up to 80% for new businesses or special purpose property

• Purchase of Real Estate


• Purchase of land and construction of new building incl. 10% of construction reserves


• Soft cost towards funding


• Expansion or remodel of existing building


• Tenant improvements (TI) and infrastructure to building or business Renewable energy projects


• Outfitting the business with furniture, fixtures and equipment.

• Assisted Living facilities


• Auto Repair


• Office Buildings


• Medical offices or facilities


• Day Care(children and adult)


• Warehouses


• Hospitality


• Restaurants