SBA 504 Loan Program NDLewis & Clark Development Group
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 504 expert:
- Senior Lending Director, Lewis & Clark Development Group (2021-Present)
- Agriculture Business Development Coordinator, N.D. Department of Agriculture (2019-2021)
- Vice President and Credit Analyst, N.D. Development Fund, N.D. Department of Commerce (2013-2019)
- Loan Processor and Lending Specialist (2009-2013)
- 12 years of economic development and banking experience
- Certified Economic Development Finance Professional - National Association of Development Companies
SBA Related Articles from our LCD Group
Lewis & Clark Development Group is closing out the federal fiscal year having processed $4.9 million in SBA 504 loans. The small businesses that have benefited from the loans run the gamut and touch on almost every economic sector. One of the most unique...
Back in May, after interest from lenders across the state, the North Dakota Opportunity Fund (NDOF) Steering Committee created a collateral support program. The program establishes pledged case collateral accounts with lending institutions within the NDOF's...
Since last October, Lewis & Clark Development Group has processed more than $4.7 million in SBA 504 loans. That number far exceeds last fiscal year's $4.2 million in total SBA 504 loans processed by LCD Group. Derrick Becker, LCD Group loan officer, expects the...