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IS MY PROJECT TOO SMALL? When determining if a project is eligible for SBA 504 financing it's easy to think of utilizing the program for larger projects. However, small projects could also benefit from the SBA 504 Loan. One of the criteria a project must meet is the "minimum debenture amount" required by the SBA. The SBA portion of the total project costs' only need to meet a minimum of $25,000. Depending on the project type, the SBA portion can range from 30-40%. Taking this into consideration the minimum total project costs' would look like this: Standard Financing Structure: $62,500 New Business OR Limited/Special Purpose Property: $72,000 Both New AND Limited/Special Purpose Property: $84,000

In addition to the normal 504 benefits, it may be advantageous to secure a 504 loan now since certain fees (typically paid by the borrower) are waived for loans approved by the SBA between December 27, 2020 and September 30, 2021. Fees Temporarily Waived: Third Party Lender Participation Fee (0.5% of the 50% bank loan) CDC Processing Fee (1.5% of the SBA loan) Contact us with your next project or visit bigskyfinance.org for more information!

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