SBA 504 Loan Eligibility: Requirements & Qualifications

The 504 SBA loan program is designed to assist businesses that need financial help to expand. In order to qualify for this type of loan, you must meet certain eligibility requirements. You will be required to be a for-profit business. You also have to be a business that has less than $8.5 million in net worth. In the last two years, you have to have made less than $3 million in net profit. Also, when the business expands, it has to either create jobs, help the general public or help the community in some way. 

Loan Uses

The funds from this type of loan can be used in a variety of ways. For example, you could use the money from this loan to purchase land for your business. You can also use the money to build a new building or expand an existing structure. Another common use of the funds from this type of loan is to pay for new equipment. Or, you can also use the money to pay for professional costs, such as hiring lawyers or engineers for your projects.