There’s two big qualification criteria for an SBA 504 finance:

There’s two big qualification criteria for an SBA 504 finance:

  1. The borrowing from the bank entity net income cannot surpass $5 million after taxes for the preceding 2 years
  2. The credit entity cannot has a real net well worth more than $15MM

Along with the qualifications obligations, there are plenty of additional restrictions to bear in mind:

  1. Mortgage proceeds is not to be useful passive or risky techniques
  2. Financial loans are not created to https://worldloans.online/title-loans-ri/ organizations involved with charity recreation
  3. For real home financial loans, the purchaser must propose to utilize at the very minimum 51percent of the property for the very own procedures within 12 months of control (NOTICE: when construction is actually just created, the Borrower must decide to utilize sixty percent at the same time also to take 80per cent of overall sq video footage
  4. The debtor may develop a true property retaining providers and sub-lease the home for the performing service

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