Who is Eligible?

• Must be a for-profit business. Generally available to individual business owners or multiple owners partnering on a project

• The business and any affiliate companies must have a net worth no greater than $15 million.

• The average net profit of the business cannot be more than $5 million in average after taxes in the last two years.

• The business must create and/or retain jobs and/or meet one of the following SBA Public Policy goals:

1. Expansion of an export business (at least 10% of last years sales must be from export sales).
2.  Expansion of a minority owned business (at least 51% ethnic minority interest).
3. Women owned.
4. Veteran owned.
5.  Other SBA-approved public policy goals.

What are the occupancy requirements for the business?

• 51% if acquiring an existing facility (49% can be permanently leased out).
• 60% for a new construction project with the potential that the business will occupy some additional space within three years, and a total of 80% within ten years. The balance of the building (20%) can be permanently leased out.

How much of an Equity contribution is required for an SBA 504 Loan?

• Commonly 10%· If the entity is considered a new business or the property is determined to be a Special Purpose Property, an additional 5% equity is required.

Types of Businesses Served by PYMES:

We are ready to help!

• Medical Doctors Practices
• Manufacturers
• Auto repair shops
• Attorneys Practices
• Car washes
• Childcare centers
• Dental offices
• Distribution centers
• Hair salons
• Hotels and Small Inns
• IT companies
• Pharmaceutical Companies
• Restaurants and food service companies
• Retail and wholesale companies
• Veterinary offices
• Warehouses

Are there any pre-payment penalties?

The SBA 504 Debenture has a re-purchase premium (RP) during the first ten years of the 20-year Debenture period.

This is a declining premium (10/9/8/7/6/5/4/3/2/1) that is calculated based on the year of the loan, remaining balance (B) and interest rate (I).

For example, if a Debenture is repurchased in year 5, the repurchase premium would be as follows: RP = B(I x .60). A 10-year Debenture has a re-purchase premium during the first five years (10/8/6/2).

Past Interest Rates