Eligibilty For A Traditional SBA 504

The SBA recently broadened its size parameters making 504 loans available to more businesses. To qualify, a business must:

• Be a for-profit business operating in the U.S.
• Have a net worth under $15 million
• Have a net profit under $5 million
• Be majority-owned by a U.S. Citizen or Legal Permanent Resident
• Occupy at least 51% of an existing building being purchased; or at least 60% of a building the company will construct with plans to expand to 80% occupancy over 10 years.

There are also special benefits for manufacturers and for businesses owned by veterans, women, and minorities, as well as businesses that increase exports, revitalize the business district or provide rural development.

Contact Harborstone to find out more about how you can access the SBA 504 loan program through Harborstone and the CDC.
 

Eligibilty For A SBA 504 Refinance

These are some of the parameters for refinancing an existing business loan through the SBA 504 refinance program:

• You need to occupy at least 51% of your commercial property
• You need to have been current for the past year on your loan with no payment being deferred or past due for more than 30 days
• Debt must have been incurred not less than two years prior to the date the application is received by the SBA
• Your small business must have been in business for at least two years
• Substantially all (85% or more) of the proceeds of the loan(s) being refinanced must have been used for eligible 504 purposes
• An independent appraisal of the fair market value of the project is required
• Existing 7(a) SBA guaranteed loans, 504 loans, and USDA loans are not eligible for this refinance program.
   

Need more information on SBA504 refinances? Contact a Harborstone SBA expert today: Janie Sacco or Tony Bulleri.

What is an SBA 504 Loan?
What is a SBA 504 Refinance?
How Do I Qualify?