How Do I Get an SBA 504 Loan?

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As you seek funding for your small business, you may want to look into SBA loans. The 504 SBA rates may be more favorable than other means of funding. Here’s how you can get an SBA 504 loan.

Stay Out of Trouble

On paper, your business is the perfect candidate for an SBA loan. You’re in the country, you can validate the need for funding, and you’ve shown business growth over the years. However, if you’re a convicted criminal on parole, probation, currently incarcerated, or in the middle of a criminal defense trial, your business isn’t eligible to receive funding.

Validate a Need for Funding

When applying for a business loan, you may want to put together or enhance an existing business plan. After all, you can’t just get approved for the loan just because you have good credit and an existing business. You must be able to demonstrate the need for such funding and describe the type of activities and products you would spend such funds on. Activities such as real estate investment aren’t eligible for funding purposes. Make sure you familiarize yourself with the existing 504 SBA rates to ensure you don’t borrow more than what you could realistically pay back.

Can you prove that you’re trying to create more jobs in your local area? If you’ve already done so in the past, then that can give you a heads-up for getting additional funds. The CDC/504 Loan Program provides financing of up to $5 million for major fixed assets that promote business growth and new jobs, according to the Small Business Administration.

Base Yourself in the United States

More Americans are starting new lives abroad. Some are becoming nomadic digital workers bouncing from country to country. However, if you want approval for an SBA loan, you have to live in the United States, and your business should also be doing business in the country or within the territories. Trade in life from Ohio to the U.S. Virgin Islands, so you can still be eligible.

Getting approval for an SBA loan can take your small business to the next level. If you’ve already worked hard and shown growth, you may now be ready to apply for help. If you want to create more jobs and expand, contact MCDC about existing 504 SBA rates today.