What are SBA's requirements regarding the Loan terms from the Participating Lenders?
What are the general rules to determine if a Project Financing Structure qualifies for an SBA 504 loan?
Does the SBA 504 Program finance investment properties?
No, the program is designed for owner-occupied facilities.
The applicant must occupy 51% of an existing building and 60% of a newly constructed building. The remaining space may be leased to a third party. No proceeds of the 504 financing can be used for fitup of the leased space.
What type of property is classified as Special Purpose? And therefore require an additional 5% equity contribution.
The SBA classifies the following types of properties as Special Purpose:
Dormitories; Cold storage facilities where more than 50% of total square footage is equipped for refrigeration; Tennis clubs; Golf courses; Swimming pools; Amusement parks; Sports arenas; Bowling alleys; Theaters; Marinas; Gas Stations; Service centers with pits and in-ground lifts; Car wash properties; Hospitals; Surgery centers; Urgent care centers; Nursing homes; Assisted living facilities; Funeral homes with crematoriums; Cemeteries; Sanitary landfills; Museums; Clubhouses; Hotels and motels; Wineries; Railroads; Farms (including dairy facilities); Oil wells; Mines; Quarries; and Gravel pits.