An SBA 504 loan has three parts

• Your bank will usually loan 50% of the project cost
• Oregon Business Development will usually loan 40% of the project cost
• Your down payment can be as low as 10% of the project cost 

Here are the basic qualifications

• Must be a for-profit company
• Building must be 51% owner-occupied for existing buildings
• Building must be 60% owner-occupied for new construction
• Almost all businesses are eligible with net worth below $7.5 million and net profit below $2.5 million/year for the past two years

Your SBA 504 financing package can be used for

• Purchase an existing building
• Purchase land & construct a new building
• Purchase an existing commercial/industrial condo unit
• Buy and install heavy machinery and equipment
• All loan costs, including appraisal, environmental, loan fees, etc

A few of the advantages of SBA 504 financing

• Lower down payment
• Longer loan term
• With SBA 504 loans, collateral is not the primary credit consideration
• For growing businesses, projected income can be considered for debt repayment

For a quick pre-qualification, you’ll need

• Business tax returns for 3 years
• Current income statement & balance sheet
• Listing of business debts & payment amounts
• Personal tax returns for 3 years
• Current personal financial statement
• Estimated project costs

* For new businesses or special use buildings, a 15% or 20% down payment will be required