Typical 504 Project

At SBAlliance Capital, we can help you find the resources you need to finance the growth of your business(es). The SBA 504 loan program, administered by SBAlliance Capital, provides healthy, small and medium-sized businesses with long-term fixed rate financing for the acquisition or construction of fixed assets. Projects are financed through a unique public/private partnership that involves private lenders financing 50% of the cost, SBAlliance Capital covering 40% of project costs, and the small business investing at least 10% into the project.

504 Proceeds are used for:

• The purchase of land or the construction of a new building
• Renovation or property improvements including upgrades for health, safety, or environmental purposes
• Purchase and/or repair of machinery and equipment with a demonstrated useful life of 10 years or greater
• Soft costs including professional fees and interest

Terms:

• SBA portion: loans are established in 10 or 20 year terms based upon economic life of assets
• Private Lender: at least 10 years on real estate and at least 7 years on equipment and leasehold improvements

Eligible Businesses:

• All corporations, partnerships, or proprietorships located in the United States and established for profit with combined net worth of $8.5 million or less and an average net profit after taxes from the previous two years less than $3.0 million.

 TYPICAL STRUCTURE OF A SBA 504 LOAN