* Startup properties require 15% equity, special purpose properties require 15% equity and properties that are both a startup and special purpose require 20% equity.

• Acquisition of vacant land for construction of a building
• Acquisition of land and building
• Leasehold improvements
• Renovation of, or addition to a building
• Construction of a building
• Acquisition of a commercial fishing vessel or party boat
• Acquisition of heavy duty machinery or equipment (such as a printing press)
• Associated soft costs: title searches and insurance, appraisals, environmental reports, architects, permits, surveys, installation of machinery, points on bridge loans, a small amount of furniture and fixtures, etc.
• Otherwise not permitted, refinancing can be undertaken through the temporary 504 Debt Refinance Program. 

The SBA 504 is a community lending program designed to improve the locality through helping small businesses make an impact on the community. Thus, eligibility requires that one of the following economic development goals be met:

Job Creation And Retention
One full-time equivalent job for every $65,000 borrowed from IBFS

Public Policy

• Revitalize a business district of a community with a written revitalization or development plan
• Expand exports
• Aid rural development
• Change necessitated by federal budget cutbacks
• Change required by mandated standard (health, safety, or environmental laws)
• Increase productivity and competitiveness (retooling or modernization)
• Expand minority-owned business development, ownership must be 51% or more
• Expand woman-owned business development, ownership must be 51% or more
• Expand veteran-owned business development, ownership must be 51% or more

Community Development

• Help to improve, diversify, or stabilize the economy of the locality
• Stimulate other business development in the community
• Bring new income into the community
• Assist manufacturing firms
• Assist businesses in a labor surplus area

IBFS may lend up to 40% of the project cost with a maximum of $5 million for all projects and can go as high as $5.5 million for SBA financing on eligible manufacturing businesses. Projects that incorporate energy saving technologies for sustainable design have also become eligible.

Such examples include:

• The project has plant, equipment and process upgrades of renewable energy sources, such as the small-scale production of energy for individual buildings or communities’ consumption. These renewable sources could include solar, wind, or geothermal energies.
• Small businesses wishing to purchase, construct, or retro-fit facilities that incorporate energy saving technologies that result in a 10% decrease in energy consumption.

The minimum SBA 504 loan must be at least $50,000. However, under good cause shown, SBA may permit a 504 loan as small as $25,000.