Credit: The borrower must meet the lender's, Premier Capital's, and SBA's credit standards.
Eligibility: The company, its owners, required guarantors, and proposed use of funds must meet current SBA 504 requirements. Common requirements include:
- The project must be within Premier Capital's service area in Indiana or eligible Kentucky communities.
- All direct and indirect owners and SBA-required guarantors must meet current SBA citizenship and residency requirements: U.S. citizenship or U.S. national status and principal residence in the United States, its territories, or possessions. Entity owners must be organized in the United States, its territories, or possessions.
- The operating company must be a for-profit business.
- The project must involve eligible owner-occupied commercial real estate and/or fixed equipment with a useful remaining life of at least ten years.
- For an existing building, the business must occupy at least 51% of the rentable property.
- For new construction, the business must initially occupy at least 60% of the rentable property, with plans to occupy some additional space within three years and all space not permanently leased within ten years. No more than 20% may be permanently leased to others.
- The business must meet an applicable SBA size standard. Under the alternative size standard, the business and its affiliates must have tangible net worth of no more than $20 million and average net income after federal income taxes of no more than $6.5 million for the preceding two completed fiscal years, excluding carry-over losses.
- Franchises may qualify when the brand is listed in the SBA Franchise Directory where required and the agreement and transaction meet current SBA requirements.
- The business and proposed use of funds must be eligible. Examples of ineligible businesses or uses include:
- Nonprofit borrowers; eligible for-profit subsidiaries may qualify.
- Passive real estate investment, real estate development for resale, or other speculative businesses.
- Businesses primarily engaged in lending, such as banks and finance companies, subject to SBA's limited exceptions.
- Pyramid sales distribution plans.
- Businesses deriving more than one-third of gross annual revenue from legal gambling.
- Private clubs and businesses that limit membership for reasons other than capacity.
- Applicants with disqualifying delinquent federal debt or a prior loss to the federal government, subject to applicable SBA rules and exceptions.
- Refinancing that does not satisfy SBA's eligible-debt requirements. Qualifying debt may be refinanced with or without expansion.