SBA 504 Loan Program

SBA 504 Loan Program is sponsored by U.S. Small Business Administration (SBA) through Certified Development Companies (CDCs) like JEDCO. This opportunity supports mission-aligned projects and measurable outcomes.

504 loans | U.S. Small Business Administration Long-term, fixed rate financing of up to $5 million for major fixed assets. What is the 504 loan program? The 504 loan program provides long-term, fixed rate financing for major fixed assets that promote business growth and job creation.

504 loans are available through Certified Development Companies (CDCs), SBA's community-based nonprofit partners who promote economic development within their communities. CDCs are certified and regulated by SBA. The maximum loan amount for a 504 loan is $5.

5 million. To be eligible for a 504 loan, your business must: Operate as a for-profit company in the United States or its possessions Have a tangible net worth of less than $20 million Have an average net income of less than $6.

5 million after federal income taxes for the two years preceding your application Other general eligibility standards include falling within SBA size guidelines, having qualified management expertise, a feasible business plan, good character and the ability to repay the loan. Loans cannot be made to businesses engaged in nonprofit, passive, or speculative activities.

For additional information on eligibility criteria and loan application requirements, small businesses and lenders are encouraged to contact a Certified Development Company in their area. 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 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 , paragraph (e) and Repaying or refinancing debt defined as "qualified debt" under 13 CFR 120.

882 , paragraph (g) Or the improvement or modernization of: Land, streets, utilities, parking lots and landscaping 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" under 13 CFR 120.

882 , paragraphs (e) and (g) Speculation or investment in rental real estate The financing of AI-related working capital, intellectual property, or consulting services soft costs 504 loans are available exclusively through Certified Development Companies (CDCs). Find a CDC in your area to ensure you are dealing with a qualified lender.

CDCs are uniquely qualified to understand 504 loan program regulations, and will help you navigate the lender channels to create your project financing. Find Certified Development Companies (CDCs) authorized to issue 504 loans. How do I pay back my 504 loan?

Loan repayment terms vary according to several factors. Borrowers with active 504 loans can make payments through the Central Servicing Agent, usually by ACH monthly draws. Payments can also be made by wire or check.

10-, 20-, and 25-year maturity terms are available Pegged to an increment above the current market rate for 10-year U.S. Treasury issues Totals approximately 3 % of the debt, rate may be financed with the loan For help with your account balance, due date, or any other questions regarding the specifics of your loan, contact your CDC.

Borrowers with debenture-purchased 504 loans can create an account in the SBA Loan Portal to monitor their loan status and make payments.