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The information provided by these calculators is for illustrative purposes only and accuracy is not guaranteed. The default figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a BLP financial professional prior to relying on the results.

This calculator does not have the ability to pre-qualify you for any loan program. Qualification for loan programs may require additional information such as credit scores and cash reserves which is not gathered in this calculator. Information such as interest rates and pricing are subject to change at any time and without notice. This calculator does not calculate the Annual Percentage Rate or Average Prime Offer Rates. BLP does not guarantee any of the information obtained by this calculator.

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SBA 504 PROJECT USES - BLP - Business Lending Partners
In order for an organization to qualify for an SBA 504 loan, their project must fall within one of these categories.
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SBA 504 PROJECT USES

August 4, 2023
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In order for an organization to qualify for an SBA 504 loan, their project must fall within one of these categories:

SBA 504loans may be used for the purchase or improvement of fixed assets 

    1. Purchase Land and Building: occupy a minimum of 51% 
    2. Purchase Land and Construct a Building: occupy a minimum of 60% at closing)
    3. Purchase Equipment 
    4. Refinance a loan used for any of the above 

BUILDINGS, LAND, & LAND IMPROVEMENTS

  • ELIGIBLE: Grading, new streets including curbs and gutters, parking lots, utilities, and landscaping
  • INELIGIBLE: Real Estate Tax Prorations & Prepaids such as water/sewer credits, security deposits, special assessments

CONSTRUCTION/RENOVATION COSTS

  • ELIGIBLE: Façade, HVAC, electrical, plumbing, roofing, drywalling; contingency not to exceed 10% of the construction cost
  • INELIGIBLE: Tenant build outs for a third party; insurance payments

MACHINERY & EQUIPMENT

  • ELIGIBLE: Must have a 10-year useful life; may include special moving costs to dismantle and install heavy or highly calibrated equipment
  • INELIGIBLE: Automobiles, trucks, airplanes, construction equipment (except for heavy duty construction equipment integral to a business’ operation and meeting the IRS definition of capital equipment)

FURNITURE & FIXTURES

  • ELIGIBLE: Essential to and minor part of the project that will not affect the weighted average of maturity, such as in a hotel construction, case goods, coffee machines, towels, bedding, or office desks and chairs
  • INELIGIBLE: Short term assets that are non-essential and a major portion of the project

PROFESSIONAL FEES

  • ELIGIBLE: Must have a 10-year useful life; may include special moving costs to dismantle and install heavy or highly calibrated equipment
  • INELIGIBLE: Consulting, Management Services, Attorney Fees including costs to incorporate/organize/register borrowing entity with the State. (The only exception is if an attorney is engaged to change zoning for a property. If this occurs then a separate invoice listing only that work must be provided)

TITLE & RECORDING FEES

  • ELIGIBLE: CDC Title Policy, title fees, and recording fees
  • INELIGIBLE: Financial Institution and Owner/Borrower Title Policy, title fees, and recording fees

INTEREST AND FEES

  • ELIGIBLE: Interest, fees, and points on interim loans (no principal can have been repaid); senior lienholder fees can be included for interim loan processing or interim loan origination fee
  • INELIGIBLE: Interest, fees, and points on the permanent participating loan

ADDITIONAL INELIGIBLE ITEMS

  • Franchise Fees
  • Broker Fees
  • Sweat Equity
  • Working Capital
  • Advertising

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