Page: What is the 504 Loan Program?

What is the 504 Loan Program?

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1 What is the 504 Loan Program?

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  504 loans
  
  Content
  
  What is the 504 loan program?
  
  The 504 loan program offers long-lasting, fixed rate financing for major fixed properties that promote business growth and task development.
  
  504 loans are readily available through Certified Development Companies (CDCs), SBA's community-based nonprofit partners who promote economic advancement within their neighborhoods. CDCs are certified and controlled by SBA.
  
  The optimum loan amount for a 504 loan is $5.5 million.
  
  Am I eligible?
  
  To be qualified for a 504 loan, your company should:
  
  - Operate as a for-profit business in the United States or its belongings.
• Have a tangible net worth of less than $20 million.
• Have an average net earnings of less than $6.5 million after federal earnings taxes for the two years preceding your application
  
  Other general eligibility requirements consist of falling within SBA size guidelines, having qualified management proficiency, a possible organization strategy, excellent character and the ability to pay back the loan.
  
  Loans can not be made to organizations taken part in nonprofit, passive, or speculative activities. For extra details on eligibility requirements and loan application requirements, small companies and lending institutions are encouraged to contact a Licensed Development Company in their location.
  
  How do I utilize a 504 loan?
  
  A 504 loan can be utilized for a series of assets that promote organization development and task production. These include the purchase or building of:
  
  - Existing buildings or land.
• New facilities.
• Long-term equipment and devices with a useful staying life of a minimum of 10 years, including project-related AI-supported equipment or equipment for production products.
• Consolidating debt under the conditions noted in 13 CFR 120.882, paragraph (e) and.
• Repaying or re-financing debt specified as "competent debt" under 13 CFR 120.882, paragraph (g)
  
  Or the enhancement or modernization of:
  
  - Land, streets, energies, parking lots and landscaping.
• Existing centers
  
  A 504 loan can not be used for:
  
  - Working capital or inventory.
• Consolidating, repaying or refinancing financial obligation that does not meet the definition of "competent debt" under 13 CFR 120.882, paragraphs (e) and (g).
• Speculation or financial investment in rental property. The financing of AI-related operating capital, intellectual residential or commercial property, or seeking advice from services soft costs
  
  What do I require to use?
  
  504 loans are offered exclusively through Certified Development Companies (CDCs). Find a CDC in your location to ensure you are handling a certified lender. CDCs are uniquely qualified to comprehend 504 loan program guidelines, and will assist you browse the loan provider channels to create your project funding.
  
  Find a CDC near you
  
  Find Certified Development Companies (CDCs) authorized to release 504 loans.
  
  How do I pay back my 504 loan?
  myrtlebeachcondoforsale.net
  Active 504 loans
  
  Loan payment terms vary according to several factors. Borrowers with active 504 loans can make payments through the Central Servicing Agent, generally by ACH month-to-month draws. Payments can likewise be made by wire or check.