The Small Business Applicant must be an operating business, be organized for profit, be located in the United States (includes territories and possessions), be small, and demonstrate a need for the desired credit.
What is the SBA definition of small?
Business + Affiliates Tangible net worth of 15 million or less
Business + Affiliates average net profit over the last two years of $5 million or less
What does the SBA consider affiliated businesses?
Affiliation can exist through common ownership, common management, excessive restrictions upon the sale/transfer of a franchise interest, or control by franchisor/licensor/dealer/jobber, etc. either directly or through an affiliated entity or agent such that the applicant does not have the independent right to both profit from its efforts and bear the risk of loss commensurate with ownership.
Eligible Uses of an SBA 504 Loan
Acquisition of vacant land, building construction, acquisition of existing buildings, major renovations and/or additions to existing buildings, marine facility acquisition (including fishing vessels and commercial boats), purchases of capital equipment (including heavy machinery), and associated costs such as title and insurance, legal fees, appraisals, environmental reports, architect fees, surveys, equipment installation, points on the bridge loan, furniture and fixtures.
If you have any questions regarding eligiblity contact one of our Loan Officers today.