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Work Desk


The basic eligibility requirements for an SBA 504 loan are as follows:

  • Be an operating business.

  • Be organized for profit.

  • Be located in the United States

  • Have a tangible net worth of less than $15 million; have an average net income, after federal income taxes, of less than $5 million for the preceding two years (Applies to industry size standard).

  • Be able to demonstrate a need for desired credit.

Ineligible Businesses for the SBA 504 Program

  • Non-Profit Business

  • Lending Institutions

  • Passive Business not using or occupying project assets

  • Life Insurance Companies

  • Businesses located in a foreign country

  • Pyramid Sales Distribution plans

  • Businesses deriving more than 1/3 of gross annual revenue from legal gambling activities

  • Businesses engaged in any illegal activites

  • Private Clubs or Businesses that limit number of memberships for reasons other than capacity
  • Government-owned entities (unless owned/controlled by Native American tribe
  • Businesses engaged in teaching, instructing, counseling, or indoctrinating religion or religious beliefs
  • Consumer and marketing cooperatives
  • Loan packagers earning more than 1/3 of their gross annual revenue from packaging SBA loans
  • Businesses with an Associate who is incarcerated, on probation, on parole, or has ever been indicted for a felony or crime of moral turpitude
  • Businesses in which the CDC or its associates own
  • Businesses which present live performances of a prurient sexual nature or more than 5% of gross revenue is through the sale of products/services of a prurient sexual nature
  • A business or applicant involved in a previously or currently defaulted Federal loan or federal financing resulting in a loss to the government.
  • Businesses engaged in political or lobbying activities
  • Speculative businesses (such as oil wildcatting)


Typical Documentation requested for the 504 Loan Program includes the following:


  • 2 most recent years of business tax returns;

  • Most recent year personal tax return;

  • Interim financial statements within 120 days;

  • Credit reports for operating company and guarantors;

  • Personal financial statement within 90 days;

  • Business debt schedules;

  • Previous government financing form (any government debt-business or personal);

  • 2 years of Projections (if start up)


  • Cost documentation (Quotes, Contracts, Invoices, etc. for project);

  • Signed Resume forms (demographic & credit authorization);

  • Signed 1244 (application);

  • Signed 8821 form (Tax transcripts);

  • Copies of driver's license;

  • Appraisal (cost can be financed into loan); 

  • Environmental report (cost can be financed into loan).

Man in Suit Signing

Special Purpose Projects

These are projects considered to have a special purpose and affects the equity injection (15% required for special purposes)
  • Amusement Parks

  • Bowling Alleys

  • Car Wash Businesses

  • Cemetaries

  • Cold Storage Facilities (more the 50% of total square footage is refrigerated

  • Dormitories

  • Farms, including livestock and dairy facilities

  • Funeral homes with crematoriums

  • Gas Stations

  • Golf Courses

  • Sports Arenas

  • Swimming Pools

  • Tennis clubs

  • Theaters and Auditoriums

  • Hospitals, surgery centers, urgent care centers, and other health or medical facilities

  • Hotels, motels, and other lodging facilities

  • Marinas

  • Mines

  • Nursing Homes, including assisted living facilities

  • Oil Wells

  • Quarries, including gravel pits

  • Railroads

  • Sanitary Landfills

  • Service Centers (ex. oil and lube, brake, or transmission centers) with pits and in-ground lifts

  • Wineries

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