504 Loan Program The 504 Loan Program provides long-term, fixed rate financing of up to $5 million for major fixed assets that promote business growth and job creation. 504 loans are available through Certified Development Companies (CDCs), SBA's community- based partners who regulate non-profits and promote economic development within their communities. CDCs are certified and regulated by SBA. A 504 loan can be used for a range of assets that promote business growth and job creation. These include the purchase or construction of: • Existing buildings or land • New facilities
• Long-term machinery and equipment Or the improvement or modernization of: • Land, streets, utilities, parking lots and landscaping • Existing facilities A 504 loan cannot be used for: • Working capital or inventory
• Consolidating, repaying or refinancing debt • Speculation or investment in rental real estate 504 loans are available exclusively through Certified Development Companies (CDCs). First, find a CDC in your area to ensure you are dealing with a qualified lender. Microloans The microloan program provides loans up to $50,000 to help small businesses and certain not- for-profit childcare centers start up and expand. The average microloan is about $13,000. SBA provides funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries administer the Microloan program for eligible borrowers. Microloans can be used for a variety of purposes that help small businesses expand. Use them when you need less than $50,000 to rebuild, re-open, repair, enhance, or improve your small business.
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