The U.S. Small Business Administration 504 Certified Development Company Loan program, or SBA 504 loan program, is available to for-profit, non-publicly traded businesses throughout Florida that meet certain small business criteria. The program is designed to promote business growth and job-creation through fixed-rate financing of major fixed assets. This can include new or existing facilities, or machinery and equipment. ABMC Capital Group, LLC works closely with local small and mid-sized business throughout Florida with all of their small business financing needs.
The United States Small Business Administration created the SBA 504 loan program for economic development purposes. The program is available exclusively through Certified Development Companies (CDC) who support and promote economic growth in their local communities. The SBA authorizes CDCs to work closely with third-party lenders to coordinate the details of the financing between all parties involved.
We can lend, on the first loan, up to $15 million purchase combined loan to value 90%, and up to $5 million on a second loan. A low 10% down payment requirement allows borrowers to conserve their working capital. Multiple loans for certain energy-efficient or manufacturing projects may be approved for up to $5.5 million per loan but the projects will need to be reviewed by the CDC and lender.
SBA 504 Program Qualifications
In order to be eligible for the SBA 504 loan program, you must:
- Be a for-profit, non-publicly traded business.
- Have evidence of business net worth that does not exceed $15 million.
- Have an average net income that does not to exceed $5 million for the two years prior to application.
- Have personal liquidity of each principal not to exceed the total project costs of the proposed SBA 504 loans.
- Have business ownership comprised of at least 51% U.S. citizens or Legal Permanent Residents.
Eligible Uses for SBA 504 Loans
The SBA 504 Loan Program supports business growth and job-creation. Investments that support these goals include:
- Purchasing land
- Funding new construction costs
- Acquiring, expanding, or renovating existing buildings
- Securing long-term use equipment and machinery
- Improving and modernizing existing facilities, parking lots, streets, and land.
Funds cannot be used for:
- Funding inventory
- Securing working capital
- Speculation or investment in rental real estate
- Consolidating, repaying, or refinancing debt.
Apply for Your SBA 504 Loan Today
Most SBA 504 loans are fixed-rate loans offered at below-market rates, and are fully amortized over the life of the loan (avoiding balloon rates). Terms are usually 10, 15 or 20 years, including financing for machinery or equipment. Additionally, occupancy must usually be 51% of existing buildings (including renovations or expansions) and 60% for new construction projects (must occupy 80% within ten years).
Contact ABMC Capital Group, LLC for all of your small business financing needs throughout Florida or Get Started With Your SBA 504 Loan Today.