Find Out What It Takes

We Allocate Provisions for Small Businesses!

Does your business need funding and financing to position itself properly? Your small business and others in various industries can benefit from the SB4 Loan Program. Established by Congress in 1986, the 504 Loan Program is the first national financing program to recognize contributions of small and medium sized businesses toward economic development and job growth in the U.S. Your business will grow and expand with the FoundationCapital touch!

Eligible Borrowers

  • For profit businesses (corporation, partnership or proprietorship)
  • Tangible net worth not to exceed $15 million
  • Net profit after taxes not to exceed $5 million during previous 2 years

Maximum Amount

  • Up to 40% of eligible cost, with a $5,000,000 debenture maximum. Manufacturers are eligible for up to $5.5 million.Total project size is unlimited

Use of Funds

  • Purchase of land
  • Construction of building
  • Modernization, renovation or improvement of building
  • Purchase of machinery or equipment with useful life of 10 years or more

Financing Method

  • Private lender provides 50% of project cost and the Small Business Administration 504 loan provides 40%

Equity Requirements

  • Minimum borrower requirement is 10%

504 Loan Terms

  • Maximum of 40 % of project – 504 loans are fully amortized
  • Terms of 20 years for real estate and 10 years for machinery and equipment
  • Fixed, below market interest rate
  • Total fees of 3% plus attorney closing fee. These fees can be included in the 504 loan amount and financed over a 20-year term.