Eligibility

Typical candidates for 504 loans are businesses that are for-profit, healthy and have a track record of growth. The company must be a small business with a tangible net worth of less than $15 million, and an average annual net income after taxes of less than $5 million. 

New jobs must be created (or in some instances, job retention will suffice) as a result of the new fixed assets being financed. The rule-of-thumb is that a project must create one new job for every $65,000 of debenture. Qualified small manufacturing firms must create one job for every $100,000 of debenture financing.

However, projects with a high community impact and low direct job impact may be considered when achieving a  Community Development or Public Policy goal (for further definition of these goals please contact us).

Start-up businesses may also be eligible, if, the small business  concern can demonstrate that it has: 

• Qualified management with related industry experience,
• A strong business plan backed by thorough research and well-based financial protections,
• Access to an adequate amount of working capital, and
• A 15% (or greater) equity contribution.

For specific eligibility questions, please feel free to contact us. 

I. Financing

II. Eligibility

III. Terms & Rates

IV. Collateral

V. Identification Procedures