• Must be a for-profit business.
• Owner must occupy 51% of an existing building or 60 percent of newly constructed space.
• Investment properties such as apartments and strip shopping centers are not eligible.
• Refinancing under certain conditions is eligible.

Allowable Use of Proceeds

• Acquisition of vacant land for construction.
• Acquisition of existing land and building.
• Building construction and/or renovations.
• Machinery, equipment, furniture, fixtures located in building being financed.
• Associated soft costs such as architectural fees, engineering, surverys appraisals, etc.

Rates, Terms, and Fees

• Bank sets rate on their first mortgage loan.  If SBA term is 20 years, bank term must be at least 10 years.
• Bank must pay a one-time fee of 1/2 of 1% to the SBA for participating in the program.
• All SBA 504 costs are financed into the loan.
• SBA 504 loans are assumable.

Collateral

• Typically project collateral only.