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ooc@oswegocounty.org / 315-343-1545

SBA 504 Loan Program
Small Business Administration 504 Loan Program

SBA 504 Loan Program

SBA 504 Loan Program

OOC is authorized to finance projects using the SBA 504 loan program which is designed to promote economic development growth and job creation in small businesses. The program can make the overall financing structure for a new business or project more attractive and affordable.


The program offers accessible, fixed rate, long term financing for land, buildings and equipment. Businesses eligible for SBA 504 loans are independently-owned, for-profit businesses that are ready to expand and create jobs. They must have a net worth less than $15 million and an average net income less than $5 million for the two years prior to SBA 504 application. An SBA Certified Development Company (CDC), such as OOC, finances 40 percent of the project with an SBA 504 loan, a bank lends 50 percent and the small business provides ten percent equity.


Funding Source Breakdown

SBA 504 Loan Funding Source Pie Chart

Some of the key points to know about the SBA 504 loan program are:


  • for every $65,000 of a regular SBA 504 loan, the project must create or retain at least one job;
  • for every $100,000 of a manufacturing SBA 504 loan, the project must create or retain at least one job;
  • machinery and equipment financed must have a useful life of at least 10 years;
  • for construction of a new building, the small business borrower must plan to occupy at least 60 percent of the space;
  • for purchase or remodeling of an existing facility, the small business borrower must plan to occupy at least 51 percent of the space;
  • the borrower must qualify as a small business. According to the SBA, about 98 percent of all U.S. companies meet the agency's definition of a small business;

and


  • the maximum size of a regular SBA 504 loan is $5 million, while the maximum for a manufacturing 504 project is $5.5 million. The interest rate is fixed for the entire 10 or 20 year term of the loan.

Link to US SBA website


Download brochure: U.S. Small Business Administration (SBA) 504 Loan Program


NOTICE--Important information about identification procedures when obtaining an SBA 504 loan:


To help the U.S. government fight the funding of terrorism and money laundering activities, federal law requires all Certified Development Companies to obtain, verify and record information that identifies each person who applies for an SBA 504 loan.


What this means for you: When you apply for an SBA 504 loan, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.



SBA 504 Project Images

River House Restaurant, Pulaksi, NY

Oswego Sub Shop, Oswego, NY

Barnett Forest Products, Scriba, NY

Bardy's 4 Seasons Tire & Auto Service, Sandy Creek, NY

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