Uses for SBA 504 Loan Funds

New and existing small businesses may use the SBA 504 loan funds to finance the purchase of:

  • land and building construction
  • an existing building
  • an existing building with renovations and/or additions
  • machinery and equipment with a useful life of at least 10 years
  • leasehold improvements

Debt refinance may be eligible if the project includes expansion of a small business and the amount to be refinanced does not exceed 50% of the cost for the expansion. Expansion includes any project that involves acquisition, construction or improvement of land, building or equipment for use by the small business.

Also, costs directly attributable to the project (i.e. appraisal, environmental reports, architect fees, equipment installation, etc.) are eligible.

The funds cannot be used for working capital or inventory.