The 504 Loan Program is an excellent financing opportunity which provides long-term payment rates with a fixed interest rate. The 504 provides business growth and new jobs for the economy.
Aristafi can get you a SBA 504 as long as you meet the qualifications below. Even if you don’t meet all of the guidelines, you should apply for this financing option.
The maximum loan amount for a 504 loan is $5.5 million. For certain energy projects, the borrower can receive a 504 loan for up to $5.5 million per project, for up to three projects not to exceed $16.5 million total.
Am I eligible?
To be eligible for a 504 loan, your business must:
- Operate as a for-profit company in the United States or its possessions
- Your business net worth of less than $15 million
- Have an average net income of less than $5 million after federal income taxes for the two years preceding your application
Other general eligibility standards include falling within SBA size guidelines, having qualified management expertise, a feasible business plan, good character and the ability to repay the loan.
Loans cannot be made to businesses engaged in nonprofit, passive, or speculative activities. For additional information on eligibility criteria and loan application requirements, small businesses and lenders are encouraged to apply with Aristafi so we can find out if this financial instrument is for you.
How do I use a 504 loan?
A 504 loan can be used for a range of assets that promote business growth and job creation. These include the purchase or construction of:
- Existing buildings or land
- New facilities
- Long-term machinery and equipment
Or the improvement or modernization of:
- Land, streets, utilities, parking lots and landscaping
- Existing facilities
A 504 loan cannot be used for:
- Working capital or inventory
- Consolidating, repaying or refinancing debt
- Speculation or investment in rental real estate