SBA 504 Loan Eligibility

Who Is Eligible for 504 SBA Loans?

Businesses seeking financing through the SBA 504 Loan Program must:

• Be a "for profit" business that has a net worth of no more than $15 million and a net profit after tax averaging less than $5 million for the two years preceding the loan request. In addition, the owners of the business must be within SBA's personal liquidity guidelines.
• Meet job creation and/or job retention goals determined by the SBA loan amount or meet certain economic development objectives.
• Have a private lender commitment for 50% of the total project cost and be able to contribute the minimum equity injection which is at least 10%. If the project involves a "single purpose facility the minimum equity injection is 15%. For businesses that are less than 2 years old the equity injection increases an additional 5%.