Who is Eligible to Get a SBA 504 Loan?

Most independently owned, for-profit businesses are eligible for financing.

Eligible Small Businesses

Business Net Worth below $15 Million, Net Profit After Taxes below $5 Million (2-year average) or Manufacturers with under 500 Employees and Wholesalers with under 100 Employees

Business located in the United States

Business Owners are U.S. Citizens or Legal Permanent Residents

Loan Contributes to Job Creation or Retention – may be waived for loans that meet a Public Policy or Community Development Goal

Building purchase will be 51% Owner-Occupied

Construction projects will initially be at least 60% Owner-Occupied, and 80% Long Term


Ineligible Small Businesses

Some businesses are not eligible for SBA 504 Loans. Please see list below.
Non-profit businesses

Financial businesses engaged in lending – pawn shops may qualify in some instances.

Businesses generating income from investments, rental properties, real estate development, or other speculative or passive sources of income.

Businesses operating under pyramid or multi-level sales distribution plans.

Businesses where over one third of revenue is from legal gambling activities.
Businesses that restrict patronage.

Businesses engaged in loan packaging.

Businesses engaged in promoting religion.

Businesses that provide prurient sexual material.

Businesses engaged in political or lobbying activities.

Insurance companies, though independent insurance agencies are eligible.