The SBA 504 Loan Program requires that the small business applicant:
Is a for-profit entity that has a tangible net worth of less than $15 million and a net-profit-after-tax averaging less than $5 million for the previous two years.
Has a private-sector lender commitment (typically for 50 percent of the total 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 or due to a significant ownership change), the required equity injection also increases by an additional 5 percent. Start-up businesses 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/public policy goal (Woman-Owned Business, Minority-owned Business, Veteran-Owned Business, Rural Development, Energy Efficiency, etc.).
Meets building occupancy requirements as detailed on the Requirements page.