SBA 504 Loan Program

What is 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).

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.

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

Who Qualifies

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 Qualified

• Nonprofit organizations

• Businesses engaged in passive or speculative activities

How to apply for SBA 504 Loan Program

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

Need Help Planning Your Next Ranch Upgrade?

If you’re applying for SBA 504 Loan Program and looking at cattle handling equipment, livestock flow improvements, or ranch infrastructure upgrades, Arrowquip can help you plan the right next step for your operation.