SBA 504 Loans: Long-Term, Fixed-Rate Capital Up to $5.5 Million
Financing major fixed assets that promote business growth and job creation. Certified Development Company (CDC) capital backed by the U.S. Small Business Administration with low equity down payments.
SBA 504 Syndicated Capital Structure
Eligibility Criteria: SBA Size & Legal Standards
To qualify for an SBA 504 loan, an applicant enterprise must satisfy the statutory eligibility requirements established under SBA.gov regulations.
For-Profit U.S. Business
Must operate as an active for-profit operating entity (LLC, C-Corp, S-Corp, or Partnership) physically located and conducting business within the United States or its possessions.
Tangible Net Worth Standard
The applicant enterprise and its affiliates must have a collective tangible net worth not exceeding $15,000,000 at the time of official CDC application filing.
Average Net Income Cap
Average net income after federal income taxes (excluding carry-over losses) must be under $5,000,000 for the preceding two fiscal years.
Feasibility & Job Creation
Must demonstrate repayment ability from operating cash flow and a commitment to job creation or retention (1 job per $75,000 of CDC debenture, or meeting community public policy goals).
Approved Uses of Proceeds vs. Program Restrictions
Official SBA.gov guidelines establish explicit boundaries regarding permissible fixed-asset acquisitions and statutory funding prohibitions.
Approved Uses (What 504 Funds Cover)
Statutorily Permitted Capital AssetsProgram Restrictions (What 504 Loans Cannot Fund)
Statutory SBA ExclusionsSBA 504 Underwriting Document Checklist
Required documentation to complete Certified Development Company (CDC) review and issue a formal SBA 504 Term Sheet.
1. Corporate Financials
Complete returns with all K-1s and supporting schedules (Form 1120, 1120-S, or 1065).
Interim financial statements dated within the past 60 to 90 days signed by corporate officers.
Itemized corporate debt schedule detailing creditors, current balances, interest rates, and collateral.
2. Guarantor Documentation
Complete Federal 1040 returns with all W-2s and schedules for all 20%+ equity owners.
Required official SBA disclosure of personal assets, real estate holdings, and liabilities.
Professional track record and operational industry experience for key officers.
3. Project Documentation
Fully executed real estate purchase agreement or property option contract.
Independent certified appraisal meeting SBA physical inspection and environmental review guidelines.
General contractor line-item cost estimates, architect blueprints, and permits (for builds).
4. SBA Filing Documents
Official federal loan application processed directly through the Certified Development Company.
Standard disclosure of ownership structure, criminal history clearance, and eligibility.
Official character evaluation clearance form for authorized principals.
Need Direct Guidance Packaging Your 504 Application?
Our direct advisory desk prepares Form 413, debt schedules, and CDC presentation decks.
Ready to Lock In Below-Market 25-Year Fixed Financing for Your Facility?
Our specialized SBA 504 underwriters will structure your 50-40-10 syndication, identify participating senior lenders, and package your CDC submission package.
Below-market fixed rates • 10–25 year debenture • Up to 90% financing