What Businesses Are Eligible For SBA 504 Loans?
The program is intended for small and medium-sized businesses. Large businesses, those with a net worth of more than $7.5 million or an average income, after taxes, of more than $2.5 million for the last two years, may be too big to access the program. What Is The Loan $$$ Limit? Normally, the 504 loan is limited to 40% of the total project up to a maximum of $1,500,000. However, “under-served” business categories (i.e. rural based, women-owned, veteran or minority-owned businesses; projects located in enterprise zone; and businesses that export), can secure up to $2,000,000 in SBA 504 funds, and small manufacturing firms can apply for up to $4,000,000 in SBA 504 loan program assistance. What Are The Interest Rates, Terms and Costs? Interest rates on the 504 portion are set by the market each month when a 504 bond is sold in New York. When the bond is sold, the interest rate is fixed for the life of the loan. The term of the 504 loan may be either 10 years (machinery and equipment loan
