Long-term, fixed rate financing of up to $5.5 million for major fixed assets.

What is a 504 loan program?

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

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
  • Speculation or invest investment in rental real estate
  • The financing of AI-related working capital, intellectual property, or consulting services soft costs

Am I eligible?

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 $15 million
  • Have an average net income of less than $5 million after federal income taxes for the two years proceeding 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.