Small Business Administration 504 Program (SBA 504)

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Eligible Applicants – Any for profit business with a net worth less than $8.5 million and profit post tax less than $3 million.

Eligible Use – Land acquisition, site improvements, acquisition of existing buildings, renovations, leasehold improvements, new construction, machinery/equipment with 10 yr life, and certain soft costs (EXCLUDES working capital, debt consolidation, refinance, venture capital, or investment purposes).

Loan Amount – $1.5 million for regular loans, $2 million for public policy goal loans, $4 million for small manufacturers, or 40% of total eligible project costs, whichever is less.

Interest Rate – Below market rate fixed for the life of the loan.  Interest rates change every month until a loan is disbursed.  Once the loan is disbursed, the rate is fixed for the life of the loan.  To find out current rates, please contact us.

Term – 10 years for machinery and equipment; 20 years for real estate.

Equity Requirement – Borrower must provide 10% equity towards total project costs. Personal guarantees of principal owners are required.

Job Criteria – One job created, or retained, for each $65K of net SBA 504 funds within 2 years of disbursement; one job for every $100k if small manufacturer.

Fees – May vary based upon project qualifications.

For further assistance or additional information, please contact

Angela Aldrich

Economic Development Specialist
(717) 240-7183
angela@cumberlandbusiness.com