The United States Small Business Administration 504 Loan Program (SBA), makes loans to small and medium sized businesses for the purchase of fixed assets, such as equipment or real estate.

Loans are funded through the monthly sale of debentures coordinated by the SBA’s central servicing agent. The purpose of the program is to provide healthy, expanding or start-up businesses with long term financing to promote economic development and focus on job creation. Please ask your Loan Specialist for current rates and terms.

ELIGIBLE USE OF FUNDS

  • Land
  • Acquisition of Existing Building
  • New Construction
  • Fixed Assets from Business Acquisition
  • Building Expansion/Renovation
  • Long-Term Equipment
  • Professional Fees
  • Lender’s Interim Points & Interest
  • Debt Refinance (Expansion Projects – debt refi may not exceed 50% of the new expansion costs)

INELIGIBLE USE OF FUNDS

  • Working Capital
  • Inventory
  • Goodwill Assets from Business Acquisition
  • Franchise Fees
  • Tenant Improvements

PUBLIC POLICY GOALS

  • Rural Development
  • Women, Minority, or Veteran Owned (ownership of 51% or more)
  • Revitalizing Economic Development Areas
  • Enhancing Economic Competitiveness
  • Expanding Exports
  • Areas impacted by Federal Budget Cutbacks
  • Projects that reduce energy consumption by at least 10 percent (Green Initiative)
  • Projects that generate renewable energy or fuels, such as biofuels (Green Initiative)