What are the general rules to determine if a Project Financing Structure qualifies for an SBA 504 loan?
• The Lender financing must be equal to or greater than the debenture. • The net debenture may not exceed 40% of the total cost of the project. • The borrower’s injection must be at least 10% of the total project cost, and may be more, as required by statute or for credit reasons. • No more than 50% of the project costs can come either directly or indirectly from Federal sources.
