Qualifications:
Credit: The borrower(s) must meet both the lenders and the SBA’s credit standards.
Eligibility: The company and their individual owners (those with at least 20% ownership) must be eligible for the SBA 504 program. Below are common eligibility requirements:
- The project must be located in Indiana
- The owners must be U.S. citizens or have a permanent resident status
- The company must be a for-profit company
- The project must be for owner occupied commercial real estate and/or fixed equipment that has a useful life of at least ten years
- For existing property the borrower must occupy at least 51% of the building
- For new construction the borrower must initially occupy 60% of the building and 80% long term
- The company must not have a tangible net worth in excess of $8 million and not have exceeded $3 million in net income over the past two years
- If a franchise, the franchise must be approved by the SBA
- Not be an ineligible company as listed below:
- Non-profit companies
- Real estate development or other speculative business
- Finance companies e.g., banks, check cashing or finance companies
- Pyramid sales distributions
- Businesses deriving more than 1/3 of gross revenues from legal gambling
- Businesses that limit membership for reasons other than capacity
- Businesses or owners that have defaulted on a government loan
e.g., student loan - Refinancing under most circumstances
