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SBA 504 Program

To encourage business expansion and job creation, we offer the SBA 504 Program. This unique program provides up to 90% long-term, fixed-rate financing for real estate acquisitions, renovations, expansions and equipment to small to midsized businesses that have employees.

Features

  • Available for a variety of uses, including the purchase or construction of an existing property or the purchase of land
  • 90% financing (10% down payment)
  • Owner-occupied real estate and equipment
  • Below-market fixed rates
  • Financing available for many SBA related fees/closing costs
  • Eligibility available for most for-profit businesses
  • 25 or 20-year fixed rate on real estate and 10-year fixed rate on equipment (on the SBA second loan)

Eligibility

  • Most for-profit business (corporation, partnership or proprietorship).
  • Operating company must occupy 51% of existing building or 61% with new construction.
  • The net worth of a business must not exceed $15 million dollars and the net income after taxes cannot exceed $5,000,000.
  • The average net profit after tax must not exceed $2 million (average over the last two years). Check with a SBA specialist if maximums are close or exceeded.
  • Maximum project size is $6 million for non-manufacturers and $10 million for manufacturers.
  • Equity requirement is 10%. An extra 5% is required for either a start-up business (two years or less) or a single-purpose building (10% additional if both are applicable).

Loan Uses

What the loan can be used for:

  • Purchase or construction of an existing owner-occupied building
  • Modernization, renovation or restoration of a building including leasehold improvements
  • Purchase of equipment with economic useful life of 10 years or more
  • Other attendant soft costs such as accountants, engineers, appraisers, construction period interest
  • Purchase of land
  • 10% contingency on a real estate construction project

Ineligible use of proceeds:

  • Working capital
  • Debt consolidation or repayment
  • Inventory
  • Refinancing (though you may be able to refinance an existing first mortgage of an existing SBA 504 deal)

How to Apply

For more information, please contact one of the following:

For the North Region and Boston, Kevin DeVinney at 781-596-4414 or [email protected]

For the South Region and Cape Cod, Adriana Moschella at 617-639-1751 or [email protected]

For Northern MA and New Hampshire, Kelly Mulholland at 603-391-9299 or [email protected]