Long-term, fixed rate financing for major fixed assets that promote business growth and job creation. 504 loans are available through Certified Development Companies (CDCs), SBA’s community-based partners who regulate nonprofits and promote economic development within their communities. CDCs are certified and regulated by the SBA. The maximum loan amount for a 504 loan is $5.5 million. For certain energy projects, the borrower can receive a 504 loan for up to $5.5 million per project, for up to three projects not to exceed $16.5 million total.

504 eligibility:

• 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.

Other general eligibility standards include falling within SBA size guidelines, having qualified management expertise, a feasible business plan, good character, and the ability to repay the loan. Loans cannot be made to businesses engaged in nonprofit, passive, or speculative activities. 

Use a 504 loan for:

Purchase or construction.

• Existing buildings or land 

• New facilities 

• Long-term machinery and equipment

Improvement or modernization.

• Land, streets, utilities, parking lots and landscaping 

• Existing facilities 

How to apply

504 loans are available exclusively through Certified Development Companies (CDCs).  CDCs are uniquely qualified to understand 504 loan program regulations and will help navigate the lender channels to create project financing.  Borrowers with active 504 loans may make monthly ACH payments through the Central Servicing Agent.