What can the SBA 504 loan be used for?

The SBA 504 loan program can be used to finance or refinance long-term fixed assets such as real estate acquisition, construction, renovation or expansion, including the purchase of land. It can also be used for land and site improvements including grading, streets, parking lots, utilities or landscaping. You can purchase and install new machinery or equipment, pay for professional fees directly attributed to a project (surveying, engineering, architectural or legal). And some other options are business acquisition, partner buyout, or refinance commercial real estate.

What are the SBA Loan requirements?

Businesses must meet the small business size standard AND create jobs or meet a public policy goal to be eligible for an SBA 504 loan. More information on SBA 504 loan eligibility and requirements can be found at https://www.dakotabusinesslending.com/what-are-the-sba-504-loan-requirements/.

SBA 7a Loan

We have several loan programs to fit almost any business need – but don’t worry about figuring out which program you need, we will do that for you. Learn more below about what makes Dakota Business Lending a great choice as a small business financing partner for lenders and borrowers.

check out our other loan programs

SBA 504

SBA ILP

SBA 7a

Rural Development IRP

DMF/Impact

Main Street

SBA 7a Community Advantage - Financing for Start-ups and Underserved Communities

Why choose an SBA 7a Community Advantage: The Community Advantage program is designed to provide a financing option for small business start‐ups in underserved communities. The SBA provides a 75 – 85% guarantee, providing participating lenders with more confidence in offering financing to riskier start‐up businesses. Community Advantage can be used to complement other loan programs.

Loan amounts: Up to $250,000

Down payment: Minimum 10%

Eligible projects:

Working capital
Equipment
Inventory
Real Estate – purchase, renovation, leasehold improvements
Business acquisition
Debt refinancing*

Collateral and security: All loans should be secured by the available assets of the borrower and its principals to the extent necessary to protect the interests of the lender.

Retail, service and agriculture: Annual sales not to exceed range of $750,000 to $33.5 million
Wholesale and manufacturing: Number of employees not to exceed range of 100 to 1,000
Terms:
Up to 10 years – Working capital/equipment
Up to 25 years – Real Estate
Varies – Debt Refinance

Rate: Variable, Maximum = Prime + 6%