SBA 504 Program – Standard



The standard SBA 504 loan program is a long-term financing tool, designed to provide small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization. Borrowers can put as little as 10% into this loan in the form of capital or existing equity real estate or equipment.

504 Loan funds must be used for fixed asset projects, such as:

  • The purchase of land, including existing buildings
  • The purchase of improvements, including grading, street improvements, utilities, parking lots and landscaping
  • The construction of new facilities or modernizing, renovating or converting existing facilities
  • The purchase of long-term machinery and equipment
  • The purchase of a doctors practice
  • Buying a dental practice
  • Purchasing a veteranarian practice
  • Buying a gas station convenience store
  • The purchase of self storage buildings

NOTE: See 504 Refinance for expanded loans guidelines



To be eligible for a 504 loan, your business must be operated for profit and fall within the size standards set by the SBA. Under the 504 Program, a business qualifies as small if it does not have a tangible net worth in excess of $7.5 million and does not have an average net income in excess of $2.5 million after taxes for the preceding two years. Loans cannot be made to businesses engaged in speculation or investment in rental real estate.