The SBA 504 Loan Program aims to foster business growth and job creation by providing long-term, fixed-rate financing for significant fixed assets. This program is available through Certified Development Companies (CDCs), nonprofit, community-focused partners certified and regulated by the SBA to encourage local economic development.

The maximum loan amount under the 504 program is $5.5 million and up to $16.5 (across three deals, for specific energy-related projects.) In general, 504 loans are ideal for:

• Businesses looking to make long-term investments in major fixed assets
• Companies aiming to expand or modernize their facilities or equipment
• Businesses engaged in energy-related projects seeking significant funding
• Companies requiring stable, fixed-rate financing for growth initiatives

To be eligible for a 504 loan, your business must:

• Be considered a small business, as defined by the SBA
• Operate as a for-profit entity in the United States or its territories
• Have a tangible net worth of less than $15 million
• Have an average net income less than $5 million after federal income taxes for the preceding two years
• Have a feasible business plan and qualified management
• Demonstrate the ability to repay the loan (680+ FICO)
• Capable of 10% downpayment on the loan
• Not be engaged in nonprofit, passive, or speculative activities