As a business owner, you OWN your business. You own the trade secrets, you own your style, your flare or your product. The question is – do you OWN the land where your business is located? What happens when your landlord raises your lease amount? What happens if your landlord sells the building you are leasing in? How are you building equity in your business?
The SBA 504 is a program that may work for you. If your business fits these guidelines and you want to build equity or maybe you are just looking for a new location, contact us for more details including a direct connection to an SBA 504 lender. The County Seat in Clark county. We bring the location, you bring the “Small Business Entity”.
- Must be a for-profit business.
- Tangible net worth not more than $15 million.
- Average net profit (after tax) not more than $5 million in the last two years.
- Multiple borrowers can partner to occupy the same building.
- The applicant business (not the individual owners) must not be engaged in speculation or investment in rental real estate.
- At least 51% of the owners of this business are US Citizens or persons lawfully in the US.
- All business owners of 20% or more of the Operating Company (OC) or Eligible Passive Company (EPC) must guarantee the SBA debt.
- The borrower must create or retain at least 1 job per $75,000 (or per $120,000 for manufacturing) guaranteed by the SBA, improve the economy of the locality, or achieve one or more public policy goals.
For an existing building
- The operating business must occupy at least 51% of the rentable square footage of the property immediately.
- 49% of the building may be permanently leased out.
For new construction
- For SBA 504 eligibility, the operating business must occupy 60% immediately, some additional within 3 years, and 80% within 10 years.
- 20% of the building may be permanently leased out.
Equipment Purchase or Refinance
- Up to 90% of cost for new equipment.
- Shipping, acquisition, dismantling, installing, and transportation costs may be included in the financing.
- Cars, trucks, and airplanes are ineligible.
You now have the opportunity to construct your new business using environmentally friendly, LEED certified methods for the modern era. If your business vision is sustainability and wealth for your future generations, contact us today to explore your options.