Who/What
Qualifies
for 504?

Credit: The borrower(s) must meet both the lenders and the SBA's credit standards.

Eligibility: The company and their individual owners (those with at least 20% ownership) must be eligible for the SBA 504 program. Below are common eligibility requirements:

• The project must be located in Indiana or Kentucky
• The owners must be U.S. citizens or have a permanent
  resident status
• The company must be a for-profit company
• The project must be for owner occupied commercial real estate and/or fixed equipment that has a useful life of at least ten years
• For existing property the borrower must occupy at least 51% of
  the building
• For new construction the borrower must initially occupy 60% of the building and 80% long term
• The company must not have a tangible net worth in excess of $15 million and not exceed a 2-year average net income after Federal income tax of $5 million.
• If a franchise, the franchise must be approved by the SBA
• Not be an ineligible company as listed below:

  • Non-profit companies
  • Real estate development or other speculative business
  • Finance companies e.g., banks, check cashing or
    finance companies
  • Pyramid sales distributions
  • Businesses deriving more than 1/3 of gross revenues
    from legal gambling
  • Businesses that limit membership for reasons other
    than capacity
  • Businesses or owners that have defaulted on a
    government loan (e.g., student loan)
  • Refinancing under most circumstances