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504 loans

Long-term financing, at a fixed rate, of up to $5 million for the main fixed assets.

  • What is the 504 loan program?

  • Am I eligible?

  • How do I use a 504 loan?

  • What do I need to apply for it?

  • How do I pay for my 504 loan?

What is the 504 loan program?

What is a 7(a) loan?

The CDC/504 Loan Program provides long-term and fixed-rate financing for the main fixed assets that promote business growth and job creation.

504 loans are available through Certified Development Companies (CDCs), the SBA community resources that regulate non-profit organizations and promote economic development within their communities. The CDCs are certified and regulated by the SBA.

The maximum amount of a 504 loan is $5 million. For certain energy projects, the borrower can receive a loan of 504 of up to $5.5 million per project for a maximum of three projects, which do not exceed $16.5 million in total.

Am I eligible?

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 territories

  • They have a net tangible value of less than 15 million dollars

  • Have an average net income of less than $5 million after federal income taxes for the two years prior to your application


Other general eligibility rules include being within the SBA size rules, having qualified administrative experience, a feasible business plan, good character and the ability to repay the loan.


Loans cannot be granted to companies engaged in non-profit, passive or speculative activities. For additional information on eligibility criteria and loan application requirements, small businesses and lenders are asked to contact a Certified Development Company in their area.

How do I use the 7(a) loan?

A 504 loan can be used for a number 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 and gardening

  • existing facilities


A 504 loan cannot be used for:

  • working capital or inventory

  • the consolidation, repayment or refinancing of the debt

  • speculation or investment in rental real estate

How do I use the 7(a) loan?

What do I need to apply for it?

504 loans are available exclusively through Certified Development Companies (CDCs).

First contact a Amerishop Financial advisor.

Then start preparing and assembling your 504 loan authorization package.

What do I need to apply for it?

How do I pay for my 504 loan?

The terms of payment of loans vary according to several factors:

Payment terms

  • Availability of expiration periods of 10 and 20 years


Interest rates

  • Set at an increase above the current market rate for U.S. Treasury Department issues. USA at 5 and 10 years old

  • They total approximately 3 percent of the debt, the rate can be financed with the loan

How do I pay for my 7(a) loan?
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