504 Loan Program The 504 Loan Program provides long-term, fixed rate financing of up to $5.5 million for major fixed assets. 504 loans are available through Certified Development Companies (CDCs), SBA's community- based partners who promote economic development within their communities. CDCs are certified and regulated by SBA. To be eligible for a 504 loan, your business must: • Operate as a for-profit company in the United States or its possessions • Have a tangible net worth of less than $20 million • Have an average net income of less than $6.5 million after federal income taxes for the two years preceding your application Other general eligibility standards include falling within SBA size guidelines, having qualified management expertise, a feasible business plan, good character and the ability to repay the loan. 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 with a useful remaining life of a minimum of 10 years, including project-related AI-supported equipment or machinery for manufacturing products • Consolidating debt under the conditions listed in 13 CFR 120.882, paragraph (e) and • Repaying or refinancing debt defined as "qualified debt" under 13 CFR 120.882, paragraph (g) A 504 loan cannot be used for: • Working capital or inventory • Consolidating, repaying or refinancing debt that does not meet the definition of "qualified debt" under 13 CFR 120.882, paragraphs (e) and (g) • Speculation or investment in rental real estate • The financing of AI-related working capital, intellectual property, or consulting services soft costs 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. SBA provides funds to specially designated
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