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Does Your Small Business Qualify for an SBA 504 Loan?

My business is a for-profit company

The proceeds of this loan will be to finance the acquisition or construction of fixed assets or refinance non-government guaranteed debt

The Operating Company and all affiliates do not have a combined tangible net worth in excess of $15 million and do not have a combined average net income in excess of $5 million after taxes for the preceding two years

If my business is a franchise, the franchise model is listed on the SBA Franchise Directory (See link below)

My business is not engaged in speculation or investment in rental real estate, including apartment buildings and/or mobile home parks

My business will occupy at least 51% of the building being purchased, if an existing building; or for ground-up construction, the operating business must occupy 60% immediately, some additional within 3 years, and 80% within 10 years.

At least 51% of the owners of this business are US Citizens or persons lawfully in the US

All business owners of 20% or more of the Operating Company (OC) or Eligible Passive Company (EPC) will guarantee the SBA debt. Each spouse with an ownership interest in the EPC or the OC will personally guarantee the loan in full when the combined ownership interest of both spouses in the EPC or the OC is 20% or more

None of the owners of this business have had prior losses with the US Government, including student loans, FHA or VA home loans

All business owners have good character with no previous or pending convictions, arrests, probations, bankruptcies or lawsuits. If no, a clearance may be obtained through SBA

Will the borrower create or retain at least 1 job per $75,000 (or per $120,000 for manufacturing) guaranteed by the SBA, improve the economy of the locality, or achieve one or more public policy goals? Please contact one of our team members to determine if you meet one of these public policy goals

If all the above questions are answered as YES, the business will typically be eligible for an SBA 504 loan.

Loans can be made to a small business, whether it is a start-up or an existing business. A start-up business requires an additional down payment of 5% of the project costs. Start-up businesses will require a business plan and reasonable projected financial statements. Please visit resources to assist you with these projections.

Please visit the SBA Franchise Directory to see if your franchise is listed

Contact one of our knowledgeable team members today to discuss your project and how the SBA 504 Loan Program can work for you.