SBA 504 Loan Program Purpose The SBA 504 Loan Program provides eligible businesses with access to 90% fixed rate financing to buy equipment and/or real estate, allowing them to save cash for operations.   Eligible Uses: · Real estate · New construction · Renovation and or expansion · Machinery and equipment (over the road equipment not eligible) · Soft costs associated with your project including but not limited to: appraisal; environmental reports and remediation; architectural and engineering fees; permits; and survey fees.   Typical Financing Package · 50% from your bank or other financial institution · 40% from the 504 Loan · 10% minimum equity   Value of the SBA 504 Program Features Benefits 90% financing Save your cash for operating needs Fixed interest on 504 Loan Significantly reduce your interest rate risk. 10 year term for Machinery and Equipment; 20 and 25 years for real estate No balloon payment. Improves cash flow. Program Requirements · Business must be organized “for profit”. · Business must have average net profit less than $2 Million for the past two years and have a net worth of less than $6 Million. Alternate size standards are available if Business exceeds the primary requirement. · Project must create and or retain one job for every $35,000 of the 504 Loan portion of the finance package or meet one of 10 public policy goals established by Congress and the SBA. · Refinance of existing debt is not permissible.