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Who Qualifies?

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   STEP 1:

In order to be considered an eligible small business, the business must be:
  • an Operating Business (any form of for-profit business can qualify - i.e. Corporation, Sole Proprietorship, Partnership, LLC, etc).
  • located within the U.S.
  • together with its affiliates, have a tangible net worth of less than $7 million and profit after tax of less than $2.5 million.
  • "Small" under SBA Program Size Standards. In general, those standards by industry are:
    • WHOLESALE - not more than 100 employees;
    • RETAIL or SERVICE - Average (over a three year period) annual sales or receipts of not more than $6.0 million to $29.0 million, depending on business type
    • MANUFACTURING - Generally not more than 500 employees, but in some cases up to 1,500 employees
    • CONSTRUCTION - Average (three year) annual sales or receipts of not more than $12.0 million to $28.5 million, depending on the specific business type
Additionally, an eligible borrower must occupy at least 51% of the subject property for existing buildings.

STEP 2:

Once the basic eligibility criteria are met, the CDC evaluates the credit worthiness of the business. Typically, the following information is requested in order to pre-qualify a project:
  • Three years Corporate Tax Returns and financial statements (Schedule C's in the case of a sole proprietorship)
  • Personal Financial Statement(s) and three years Individual Tax Returns on owners of 20% or more of the company
  • Interim Financial Statement, not more than 90 days old
In general, start-up enterprises don't usually qualify for an SBA 504, however, there are exceptions in the case of businesses expanding to a new location or business owners that bring significant industry experience to the project.

For questions regarding eligibility, please call us!		  

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