SBA 504 Loan Application Portal | Eligibility Requirements

SBA 504 loan application

Small business owners who want to make large purchases can consider 504 loans. All they need to do is to qualify and wait for the funding. Check the SBA 504 loan application guide to see how you can qualify for the loan.

Also, below, you will see the required documents to need to provide before you can apply for SBA 504 loan. We are here to guide you through the ropes for SBA 504 application.

What is SBA 504 Loan?

SBA 504 loans, also known as CDC/504 loans, are federally backed small-business loans issued by Certified Development Companies. SBA 504 loans are one of the three main lending programs offered by the US Small Business Administration, along with 7(a) loans and microloans.

Certified Development Companies (CDCs), the SBA’s community-based partners who govern non-profits and encourage economic development in their communities, offer 504 loans. The SBA certifies and regulates CDCs.

What Can I Use CDC/504 Loan For?

  • According to the SBA, you can use a 504 loan to buy fixed assets that “promote business growth and job creation.” A new building, equipment, or machinery are examples of these assets.
  • You can also use a 504 loan to construct or upgrade facilities such as utilities, streets, or parking lots.
  • A 504 loan, unlike other types of term loans, cannot be used for working capital, inventory purchases, debt repayment or refinancing, or investment in rental real estate.

SBA 504 Loan Eligibility Requirements

To qualify for SBA 504 loan, you must:

  • Operate a profit-based business
  • Do business in the United States
  • Have a net worth of less than $15 million in cash
  • For the two years before your application, have an average net income of less than $5 million after federal income taxes.

SBA 504 Loan Application Requirements

These are the documents you need to provide when you are applying for SBA 504 loan:

  • Business plan
  • Business and personal tax returns (for at least three years)
  • Contractor estimates (if you want to borrow for construction)
  • Cost documentation (if you want to borrow for equipment purchase)
  • Business and personal financial statements

CDC 504 Loan Application Guidelines 

Follow the guide below to see how you can apply for SBA 504 loan:

  1. Find a CDC in your area: Only Certified Development Companies are eligible for 504 financings (CDCs)
  2. Gather the documents you need for your 504 loan application.
  3. Apply.
  4. Wait for approval and closure.

504 Loan Alternatives


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