Eligibility Criteria:
- Legal entity - corporation, partnership, sole proprietor, limited liability company
- Located in the United States
- Net worth under $8.5 million and net profits under $3 million
- Participation by another lender who finances up to 50% of project costs
- Economic development goals must be achieved through the project financing
- Owner-user of the project being financed must occupy at least 51% of the property for an existing building or 60% of a newly constructed building. Two or more unrelated small businesses can receive an SBA 504 loan if they combine to meet occupancy requirements.
A Small Business is Not Eligible if it is:
- A not-for-profit (exception for sheltered workshops)
- Engaged in lending; a passive holder of real estate and/or personal property; a life insurance company – however an insurance agency is eligible)
- Located in a foreign country or owned by aliens who do not have legal permanent resident status
- Has restriction on patronage
- Is a government-owned entity (exception for Native American tribes)
- Engaged in promoting religion
- Consumer and marketing cooperatives (producer cooperatives are eligible)
- Engaged in loan packaging
- Owned by persons of poor character
- Equity interest by lender, CDC or associates in applicant concern
- Provides prurient sexual material
- Has previously defaulted on a federal loan
- Engaged in political or lobbying activities
- Speculative businesses
Contact Manhattan Merchant Services today to speak with a Specialist to discuss how we can implement a 504 Loan for you and your business!
