- 5.46%November 2013504 20-Year Term
SBA 504 LOAN ELIGIBILITY
The 504 loan serves numerous expanding small to mid-sized businesses. It is available to individual business owners or multiple owners partnering on a project.
Kinds of businesses served
- Auto and motorcycle dealerships
- Auto repair shops
- Car washes
- Childcare centers
- Dental offices
- Distribution centers
- Hair salons
- Heating and mechanical contractors
- Hotels and motels
- Internet companies
- Law offices
- Medical offices
- Restaurants and food service companies
- Retail and wholesale companies
- Veterinary offices
Answer these questions to find out if your business is eligible:
- Are you a for-profit business?
- Has your average net profit after taxes been less than $5 million during the previous two year's tax returns?
- Will this loan be used to finance the acquisition, construction or renovation of real estate or the purchase of equipment?
- If the loan is used to purchase a building, will your business occupy at least 51% of the space?
- If the loan will be used for ground-up construction, will your business occupy at least 60% of the building now and 80% long-term?
- All owners of 20% or more of your business, and a real estate holding company if it is formed, must be willing to guarantee the loan.
If you answered YES to all of these questions, you are likely eligible for a 504 loan.
Contact your local loan officer to find out if your business is eligible.