The SBA 504 Loan is a powerful economic development loan program that provides small businesses with fixed-rate financing for the purchase of long-term assets. The 504 loan is made in conjunction with the borrower’s local financial institution, which provides a first mortgage for up to 50 percent of the project cost. This program is a win-win-win for small businesses, communities, and participating lenders.

Frequently Asked Questions


What can the SBA 504 Loan be used for?

The SBA 504 Loan can be used for land acquisitions, equipment, new construction, renovation projects, leasehold improvements, and to cover professional feels such as engineering or architectural services.


    What are the eligibility requirements?

    For-profit small business with a tangible net worth of not more than $15 million with an average after-tax profit of not more than $5 million for each of the last two years, including affiliates. Applicants can be a corporation, partnership, proprietorship, LP, or LLC. The loan can also be used for expansion-related refinance of existing fixed asset debt.

    However, the loan may not be used by non-profits, print media, lenders, businesses engaged in gaming, or for real estate investment.

    LCD Group’s SBA Loan expert:

    Tracy Whitney

    • LCD Group SBA 504 Loan Program Officer (2007 – Present)
    • President, Capital Consulting (2001-2007)
    • Economic Development Specialist, South Central Dakota Regional Council (1991-2001)
    • 29 years of commercial lending experience
    • Economic Development Finance Professional – National Development Council

    Contact Tracy

    (701) 667-7602

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