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Who Qualifies for an SBA 504 Loan?

The SBA 504 Loan Program is for fixed-asset financing. Proceeds from an SBA 504 loan cannot be used for working capital or inventory, consolidating or repaying debt or refinancing. It can be applied to these specific needs:
  • Land acquisition and improvements 
• Construction of new facilities
• Purchase of existing or build-to-suit facilities
• Renovation or restoration of existing facilities
• Equipment and machinery purchases


How to Qualify for an SBA 504 Loan.

To qualify for an SBA 504 loan, your business:

  • Must be an operating for-profit business 
• Must use the financing for a project located in the U.S.
• Must have a tangible net worth of less than $7 million and profits after tax of less than $2.5 million (includes affiliated entities)
• Must meet an economic development objective such as the creation of new jobs or other community improvement