504 loans
Long-term financing, at a fixed rate, of up to $5 million for the main fixed assets.
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What is the 504 loan program?
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Am I eligible?
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How do I use a 504 loan?
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What do I need to apply for it?
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How do I pay for my 504 loan?
What is the 504 loan program?
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?
To be eligible for a 504 loan, your business must:
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Operate as a for-profit company in the United States or its territories
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They have a net tangible value of less than 15 million dollars
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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:
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existing buildings or land
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new facilities
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long-term machinery and equipment
Or, the improvement or modernization of:
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land, streets, utilities, parking and gardening
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existing facilities
A 504 loan cannot be used for:
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working capital or inventory
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the consolidation, repayment or refinancing of the debt
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speculation or investment in rental real estate
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.
How do I pay for my 504 loan?
The terms of payment of loans vary according to several factors:
Payment terms
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Availability of expiration periods of 10 and 20 years
Interest rates
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Set at an increase above the current market rate for U.S. Treasury Department issues. USA at 5 and 10 years old
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They total approximately 3 percent of the debt, the rate can be financed with the loan
