SBA 504 Loan
- The 504 loan program provides long-term, fixed rate financing for major fixed assets that promote business growth and job creation
- The maximum loan amount for a 504 loan is $5.5 million
- A 504 loan can be used for a range 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 with a useful remaining life of a minimum of 10 years, including project-related AI-supported equipment or machinery for manufacturing products
- Consolidating debt under the conditions listed in 13 CFR 120.882(Link is external), paragraph (e) and
- Repaying or refinancing debt defined as "qualified debt" under 13 CFR 120.882(Link is external), paragraph (g)
- Or the improvement or modernization of:
- Land, streets, utilities, parking lots and landscaping
- Existing facilities
- A 504 loan cannot be used for:
- Working capital or inventory
- Consolidating, repaying or refinancing debt that does not meet the definition of "qualified debt"
- Speculation or investment in rental real estate
- The financing of AI-related working capital, intellectual property, or consulting services soft costs