SBA 504 Loan Program

Major ranch infrastructure, a new processing facility, a land purchase, a long term equipment investment, takes real capital. The SBA 504 Loan Program is a federal financing tool that gives for profit U.S. businesses access to up to $5.5 million at a long term, fixed rate. There's no annual deadline; applications are accepted on a rolling basis through SBA certified Certified Development Companies (CDCs).

Key facts

• Program: SBA 504 Loan Program

• Agency: U.S. Small Business Administration (SBA)

• Amount: Up to $5.5 million

• Rate: Long term, fixed rate

• Deadline: Rolling, no set close date

• Delivered through: SBA certified Certified Development Companies (CDCs)

• Application: https://www.sba.gov/funding-programs/loans/504-loans

What the SBA 504 program funds

The program is built for major fixed assets that support long term business growth and job creation. Eligible uses include:

• Land purchases

• Construction or renovation of buildings and facilities

• Long-term machinery and equipment

For cattle producers, that could mean financing a new handling facility, expanding existing infrastructure, or purchasing additional acreage tied to a growth project.

Can SBA 504 funds cover cattle handling equipment?

The SBA 504 program funds "long term machinery and equipment" broadly, which could include cattle handling equipment and processing facility builds. However, livestock specific equipment is not explicitly named as eligible in program guidelines. Cattle handling equipment, such as chutes, crowding tubs, and alleys, may qualify when bundled with a larger eligible project. Confirm whether your specific equipment selection qualifies with your CDC or SBA program administrator before purchasing.

Who is eligible

To qualify for an SBA 504 loan, your operation must meet all of the following:

• Operating as a for-profit business in the United States

• Tangible net worth of less than $20 million

• Average net income of less than $6.5 million after federal taxes for the two preceding years

Who is not eligible

• Nonprofit organizations

• Businesses engaged in passive or speculative activities

How to apply

SBA 504 loans are not applied for directly through the SBA. You work with an SBA-certified Certified Development Company (CDC) in your region. The CDC partners with a private lender to structure the loan. Visit the SBA's official 504 loan page to find a CDC and begin the application process.

Start your SBA 504 application at SBA.gov