SBA 504 Requirements

SBA 504 Commercial Loans - Use of Proceeds

The SBA 504 loan program may be used in the ways listed below.


  • The purchase of land, including existing buildings
  • The purchase of improvements, including grading, street improvements, utilities, parking lots and landscaping
  • The construction of new facilities or modernizing, renovating or converting existing facilities
  • The purchase of long-term machinery and equipment

Illegal Uses

  • Working capital or inventory
  • Consolidating, repaying or refinancing debt
  • Speculation or investment in rental real estate

SBA 504 Commercial Loans