The
SBA 504 Loan Program requires that the small business
applicant:
Is a for-profit entity that has a net worth of less than
$8.5 million and a net-profit-after-tax averaging less than $3.0 million for
the previous two years. In addition, the owners of the business must
be within SBA's personal liquidity guidelines.
Has a private-sector lender commitment for 50 percent of the
project cost and is able to contribute the minimum equity injection,
which is at least 10 percent of the total project cost. In addition, if
project proceeds are for the purchase or construction of a
single-purpose facility, the required equity injection increases by 5
percent. If the business is new (less than two years old), the
required equity injection also increases by an additional 5 percent.
Start-up businesses also need to be sufficiently
capitalized.
Meets job creation and/or retention goals, as determined by
the SBA 504 Loan amount, or meets an economic development objective
(Woman-Owned Business, Minority-Owned Business, Rural Development,
etc.)
