Legal entity – Corporation, partnership, sole proprietor, limited liability company
“Small” business – Either: net worth of $15.0 million & net profits after taxes under $5.0 million OR meet SBA’s other size standards (by scales or number of employees depending on SIC code)
Using loan proceeds for Capital investment including; land, building, renovations, construction, machinery and associated soft costs (the SBA 504 program is not a working capital program)
Owner Occupied – 51% occupancy if existing building; 60% occupancy if new construction
Personal Guarantees – Unlimited Full Guarantee required on any owner(s) of 20% or more
Another lender must be willing to participate in financing. The SBA 504 loan finances up to 40% of the total project in a subordinate lien position and the other lender finances 50%
PLP works with any traditional bank, credit union and private lender interested in partnering on a 504 deal
Don’t have a lender, no problem we’ll work closely with you to figure out a good fit
Economic Development Goals – Must be achieved through project being financed
Preferred Lending Partners is approved to offer ALP Express Loans.
