Additional Information for Borrowers
- Almost any type of business is eligible: manufacturer, distributor, retailer, ect. Start-ups as well as existing businesses are eligible. In order to qualify, businesses must: Occcupy at least 51% of the floor space in an existing building
- If constructing a new building, the business must occupy at least 60% of the floor space, with reasonable projections of growth indicating that the business will need the excess space. Only 20% of the floor space may be rented out to a permanent third party.
- Each owner of 20% or more of the business must guaranty the loan.
- The project must meet one of the following public policy goals: creation of jobs, ownership by minorities and women, rural development, public policy energy goals, and/or being located in a distressed area.
- The business must be a for-profit and must average less than $5 million in profits after taxes and have less than $15 million in tangible net worth.
- There is no project maximum size under the 504 loan since there is no limit on the bank loan. The maximum 504 loan is $5 million, $5.5 million for manufacturing loans.
- Minimum project size is $125,000