What types of businesses are eligible for 504?
- Businesses incorporated as “for-profit”. Nonprofits are not eligible.
- Businesses operating within a “non-passive” business model. This includes the vast majority of businesses. Notable exceptions include investment real estate, gambling, foreign-owned, and marijuana-related businesses.
- Businesses must be considered “small” by SBA standards. Generally this requires that the business and its affiliated companies have a net worth of less than $15 million and average net income less than $5 million.