SBA 504 Loan Program

The SBA 504 loan program was established in 1980 to provide small businesses an additional financing option to expand through the purchase of fixed assets such as real estate, machinery and equipment with a government guaranteed loan.

The SBA 504 loan program offers small business owners affordable long-term fixed rate financing through a partnership with your bank.  The business must occupy 51% of an existing property to be financed or 60% of new construction.  Additionally, the project must help maintain current employment levels or create additional jobs, unless a Public Policy goal is met.

 Resource

The U. S. Small Business Administration (SBA) assists small businesses through an array of programs.  Visit the SBA’s website www.sba.gov for more information.

Be prepared, the following is a quick list of questions that will help you prepare for an initial meeting with your lender.

How many years has the business been in existence?
How many employees does the business have?
What is the business’ estimated annual revenue?
Is the business a for-profit business? What is the business type?
What is the total amount of financing that you are seeking?
How will you use the money?
Is collateral available to support the loan?
Are you interested in receiving business advisory services (technical assistance)?
Do you have a written business plan?
Have you applied for a loan with another financial institution?
Please provide a description of the current status of the business highlighting the reasons why you need financing