Eligible Businesses

Organization

Must be for-profit and can be a corporation, partnership, sole proprietorship or a limited liability company.

Operations

Some types of eligible businesses include manufacturing, wholesale, service, professional service or retail.

Location

Must be located in or planning to locate to Nebraska.

Small Business

Net worth under $15 million and net profits under $5 million or meet SBA’s other size standards.

Proposal

The use of loan proceeds for capital investment (land, building, leasehold improvements, renovation, construction, machinery or associated soft costs). The proposal must also seek to achieve an economic development goal. To view these goals, please see 504 FAQs.

Financing

A lender must be willing to participate in the financing as the 504 loan only finances up to 40 percent of the total project cost. The lender finances 50 percent and the business contribution is dependent upon the business history or type of project.

Occupancy

The owner-user of the project being financed is required to occupy at least 51 percent of an acquired existing building or 60 percent if it is newly constructed. Two or more unrelated small businesses can receive an SBA 504 loan if they combine to meet occupancy requirements of 51 percent for an existing building or 60 percent on new construction.