The eligibility requirements for SBA 504 loans for manufacturers are the same as for other businesses. To qualify, you must be a for-profit business that operates primarily within the United States, and you must meet the SBA's size standards. Additionally, you must be able to demonstrate that you have the ability to repay the loan. You must also have a good credit history and be able to provide collateral for the loan. For more information on eligibility requirements, please visit https://www.sba.gov/funding-programs/loans/sba-504-loan-program.

Manufacturers stand to gain quite a bit with SBA 504 loans. A qualifying small manufacturing company can obtain an SBA 504 loan for up to $5.5 million, which is $500,000 more than other businesses. With this one loan, you can purchase already existing buildings or construct new ones, purchase land and make improvements, purchase equipment, modernize your existing facilities, or even convert facilities or upgrade your equipment.

However, there are certain restrictions on how these funds can be used. For instance, you cannot lease equipment with the loan, you can only purchase it. You also cannot use the funds as working capital. Other loans can be used for this purpose if necessary, such as an SBA 7(a) loan or an SBA express loan.

Manufacturers can obtain an SBA 504 loan for up to $5.5 million. This loan can be used to purchase existing buildings or construct new ones, purchase land and make improvements, purchase equipment, modernize existing facilities, or convert facilities or upgrade equipment.

However, there are certain restrictions on how these funds can be used. For instance, you cannot lease equipment with the loan, you can only purchase it. You also cannot use the funds as working capital.

If working capital is a priority, you may want to look into getting an SBA 7(a) loan, or perhaps an SBA express loan. SBA 7(a) loans offer borrowers up to $5 million, though they do have higher interest rates. Express loans are a variant of the 7(a) program, which can be approved significantly faster and with less paperwork than a traditional 7(a) loan. These loans are offered in amounts of up to $350,000.

You can apply for an SBA 504 loan for manufacturers by following the steps outlined in the SBA 504 loan application process. This includes completing an SBA 504 loan application form 1244, a Statement of Personal History (form 912), a Personal Financial Statement (form 413), two business financial statements, a list of contact information for applicable affiliates and subsidiaries, your original business certificate or license, records of any previous loan applications, business and personal federal income tax returns, personal resumes, and a written history of challenges the business has faced, why the SBA loan is needed, and how it can help. If the loan proceeds are being used to purchase an existing business, you will also need a P&L statement of the business you are buying, income tax returns of the business you are purchasing, terms of sale and the proposed bill, and a list of inventory, furniture, fixtures, machinery and equipment.

When applying for an SBA 504 loan for manufacturers, you will need to provide the CDC and your lender with a wide range of documentation. This includes:

• Business tax returns for the previous three years
• Personal tax returns for the previous three years
• Personal history statement
• Personal financial statement
• Personal budget analysis
• Business financial statements for the previous three years
• Business debt schedule
• If you are applying for a loan for a hotel or motel, you will need:
  • Revenue and expenses breakdown for the past year (month to month)
  • Occupancy percentage and average daily rate information for the previous year (month to month)
  • Occupancy percentage and average daily rate for the area
  • Your hotel projection worksheet
• Interim financial statement (signed and dated, and including balance sheet and income statement dated within the previous two months)
• Accounts receivable aging (dated within the previous two months)
• Accounts payable aging (dated within the previous two months)
• Complete business plan
• One year of financial projections with assumptions
• Purchase agreement
• Written estimate from a contractor if the loan is for construction
• If this is a franchise, you will need a letter of intent from the franchisor and a FUOC and franchise agreement
• If you are buying another business, also include:
  • The business owner’s tax returns for the previous three years
  • Interim finance statement dated within the last 60 days
  • Signed purchase agreement with cost breakdown, amendments, etc.
• If you are using gift funds, you will need to provide a gift letter
• Previous government financing schedule
• Environmental impact questionnaire
• Application certification an authorization
• Documents pertaining to the ownership of other businesses and their finances (if applicable)
• Copy of loan agreement and SBA authorization if you have another SBA loan
• If you are refinancing a loan, you will need:
  • Copy of the original debt documentation
  • Your original purchase agreement, including settlement sheet,