SBA 504 Loans

Though CDC/504 loans tend to be conflated with real estate, they are really designed for anything that you log under “property, plant, and equipment.” This means you can use them for purchasing or renovating commercial real estate or for purchasing equipment.

These are some eligible uses for SBA 504 loans:

  • The purchase of existing buildings
  • The purchase of land and land improvements, including grading, street improvements, utilities, parking lots and landscaping
  • The construction of new facilities or modernizing, renovating, or converting existing facilities
  • The refinancing of debt in connection with an expansion of the business through new or renovated facilities
  • The purchase or upgrade of equipment and machinery

You can’t use an SBA CDC/504 loan to refinance pre-existing debt or for working capital, so if you’re looking for a more versatile loan, then consider the SBA 7(a) loan program.

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