504 SBA Loan | Funding Lobby- Market Place For Loans

What is the 504 loan program?

The CDC/504 Loan Program provides long-term, fixed rate financing of up to $5 million 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.

Am I eligible?

To be eligible for a 504 Loan, your business must:

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. For additional information on eligibility criteria and loan application requirements, small businesses and lenders are encouraged to contact a Certified Development Company in their area.

How do I use a 504 loan?

A 504 loan  can be used for a range of assets that promote business growth and job creation. These include the purchase or construction of:

Existing buildings or land
New facilities
Long-term machinery and equipment

Or the improvement or modernization of:

Land, streets, utilities, parking lots and landscaping
Existing facilities

A 504 loan  cannot  be used for:

Working capital or inventory
Consolidating, repaying or refinancing debt
Speculation or investment in rental real estate

What do I need to apply?

504 loans are available exclusively through Certified Development Companies (CDCs). First,  find a CDC  in your area to ensure you are dealing with a qualified lender.

Then begin to prepare and assemble your  504 loan authorization package, using our 504 Authorization File Library to identify the documentation you will need to apply for your 504 CDC loan.

How do I pay back my 504 loan?

Repayment Terms, Interest Rates, and Fees

Loan repayment terms vary according to several factors:

Repayment terms	Both 10- and 20-year maturity terms available
Interest rates	Pegged to an increment above the current market rate for 5-year and 10-year U.S. Treasury issues Totals approximately 3 % of the debt, rate may be financed with the loan

Apply Now