SBA 504 LOAN PROGRAM-ELIGIBILITY ELIGIBLE BUSINESSES Must be for-profit corporation, limited liability company, partnership or sole proprietorship located in the United States Net worth under $15 million Average net profit after tax must be under $5 million for the last two years Must have 500 or fewer employees Small Business applicant must be the primary user of project assets financed Project financed should create or retain one job for each $65,000 of SBA net debenture amount (exception for meeting public policy goal)  INELIGIBLE BUSINESSES Non-profit Organizations Investment Companies Gambling Facilities Financial Institutions Religious Organizations Business that previously defaulted on a federal loan ELIGIBLE PROJECT COSTS Land acquisition Land improvements (grading, parking lot, landscaping, utilities and drainage) Construction (new, renovation and major additions)-must be 60% owner occupied Acquisition of existing building-must be 51% owner occupied Leasehold Improvements (minimum 10 year lease) Acquisition, delivery and installation of machinery and equipment (10 year useful life) Contingency (not to exceed 10% of estimated construction costs) Professional fees (engineering, architectural, surveying, appraisal, environmental) Repayment of interim financing points and interest Limited refinancing with restrictions INELIGIBLE PROJECT COSTS Working capital, business inventory, rolling stock Refinancing (unless certain retstrictions are met) Investment properties