SBA 504 Loans

The Small Business Administration (SBA) 504 loan program was created to help small to mid-sized business owners acquire commercial property without the financial hassles. While this program is less-used and very little understood, in order to qualify, over half (51%) of the property must be occupied by the borrowers within one year of ownership. Another option is forming a holding company from two operating companies. This company can then take the title to the commercial property. To qualify for this program, U.S. citizens or permanent residents must hold a majority of the ownership of the operating companies and the holding company. The 504 Loan does not contain any restrictions or ceilings; however, there are three criteria for eligibility:

The company’s average net income cannot surpass $2.5 million.

The anticipated project size must be greater than the personal, non-retirement, unencumbered liquid assets of the guarantors/principals.

Net worth of the operating companies must be $7.5 million or less.

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201 E Rumble Rd A-2
Modesto, CA 95350

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Lic. By CA Dept. of Real Estate 31 Years

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