Ocean State Business

Development Authority, Inc.

SBA 504 Loan

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Eligibility for SBA 504 Loans

Most for-profit businesses with less than $7.5 million in Net Worth or after tax profits of less than $2.5 Million.

Permitted Use of Proceeds

• Acquisition of fixed assets such as land and buildings.

• Purchase an existing building and make necessary renovations (this could be the building in which the small business currently operates).

• New construction or renovation.

• Construct or remodel buildings on leased land (where the lease is longer than the term of the 504 loan). Outside collateral will generally be required.

• Acquire and install machinery and equipment with a minimum 10-year economic life.

• Professional costs (excluding legal fees).

• Refinancing is not permitted except to take out financing on property acquired within the last 9 months with interim funds.