the SBCs contribution will increase to 15% if the project involves a new business and/or special purpose property; 20% if it involved both a new business and special purpose property. What can my business finance with a 504 loan?
• Purchase of land • Purchase or construction of an owner-occupied building • Modernization, renovation, restoration of a building • Acquisition of machinery and equipment with at least a useful life of ten years • Soft costs associated with the project (appraisals, environmental studies, construction period interest, closing costs, etc.) Is refinancing allowed? A limited amount of debt refinancing is permanently permitted if there is a business expansion. The debt refinanced must not exceed 50% of the cost of the expansion and must be less than 1/3 of total project costs. In addition, a temporary two-year program for refinancing existing small business commercial debt has just been approved. Details of eligible structures will be forthcoming from the Office of Management and Budget. Is there a minimum project size? 504 Projects typically range in size from $200,000 to $13,750,000 with the 504 loans ranging from a minimum of $25,000 to a maximum of $5,000,000 or $5,500,000 if the borro
