SBA 504 Loan Program 

SBA 504 Financing offered by Alliance Capital Corporation. The purpose of the SBA 504 Loan Program is to provide developing, expanding businesses with long-term below market rate financing for the acquisition of land and building, machinery and equipment and construction and renovation. The 504 Program provides financing to meet the needs of small and medium sized businesses.

•   For Profit Businesses (corporations, partnerships or proprietorships)
•   Tangible net worth not to exceed $15.0 million
•   Net profit after taxes not to exceed $5.0 million average for past two years (after federal income taxes)
•   Owner Occupied Commercial Real Estate occupancy must be 51% for existing buildings and 60% for new construction

• 504 loans set at $5.0 million for the SBA portion which allows for a project size of $12.5 million. On projects for small manufacturers and loans that qualify under energy efficient criteria the maximum loan size is set at $5.5 million SBA portion which allows for a project size of $13.75 million.
• The above loans use the standard 50/40/10 allocation.

• Purchase of land for new construction
• Acquisition of Existing Buildings
• Modernization, renovation or improvement of Commercial Property
• Purchase of machinery or equipment with useful life of 10 years or more
• Debt Refinancing (temporary through September 2013)

• Private lender provides 50% of project cost and the Small Business Administration 504 loan provides up to 40%
• Borrower obtains up to 90% financing for the entire project.

• Maximum of 40% of project – 504 loans are fully amortized
• Terms of 20 years for real estate and 10 years for machinery and equipment
• Fixed, below market interest rate
• Minimum borrower requirement is 10%
• All fees plus attorney closing fee, can be included into the 504 loan amount and financed over a 20 year term.

Read the latest 504 Newsletter and rate sheet...