SBA 504 Eligibility: What You Need to Know

Eligibility Requirements for the SBA 504 Loan Program

In order to take out an SBA 504 loan, your business must be eligible for the program. The eligibility requirements are pretty simple, though. In order to qualify, businesses must be for-profit enterprises, must not be above a certain size, and cannot be in engaged or involved in certain industries, such as lending money, gambling, speculation, or illegal activities. To help clarify things, we’ve created a quick and easy list to help you determine if your business qualifies for the program:

  • Your business must be a for-profit organization.

  • Your business must meet current SBA size standards.

  • Your business’ net worth cannot exceed $15 million.

  • Your business cannot earn 1/3 or more of its income from packaging SBA loans.

  • Your business must earn an average of $5 million or less per year (after taxes, and only for the preceding two years)

  • Your business cannot be engaged in any sort of passive or speculative activities

Note that additional requirements may be placed by CDCs or conventional lenders. You can find a full list of eligibility requirements and other important information with the SBA here.


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