In order to be eligible for a SBA 504 program loan, the business receiving financing must meet the following criteria:

• Be an operating business or an “eligible passive concern” (leases real or personal property to the operating company for use in the operating company’s business)
• Be organized for profit
• Be located within the United States
• Be “small” under the program size standards:  Tangible Net Worth ≤ $7MM and Net Profit ≤ $2.5MM (2 year average).  Can use 7a size standards as an alternative
• Demonstrate the need for desired financing (credit not available elsewhere)
• Meet an “Economic Development Objective” of the program