The SBA 504 Loan Program is a powerful tool for small business owners in Dallas, Texas looking to purchase, improve, or refinance commercial real estate or equipment. With fixed, below-market interest rates and long repayment terms, this program can offer a major financing advantage. But how do you qualify? Here's your complete guide to understanding the eligibility, documentation, and application process for an SBA 504 loan in Dallas.
What Is an SBA 504 Loan?
The SBA 504 loan is designed to help small businesses acquire fixed assets such as:
- Owner-occupied commercial real estate
- Renovations or expansions of existing properties
- Heavy equipment or machinery
This loan is typically structured in partnership between a Certified Development Company (CDC), a lender, and the borrower. The SBA provides a guarantee on up to 40% of the loan, reducing risk for lenders and cost for borrowers.
Eligibility & Documentation Requirements
Eligibility Criteria
- Be a for-profit business operating in the U.S.
- Have a tangible net worth under $15 million
- Average net income under $5 million (after taxes) for the past two years
- Use at least 51% of the property for your business
- Have strong management experience and a feasible business plan
Required Documents
- 3 years of business tax returns
- Personal financial statement for each principal
- Business plan and financial projections
- Interim financials (balance sheet + P&L)
- Purchase agreement (if acquiring real estate)
Benefits of the SBA 504 Loan
Compared to traditional commercial loans, SBA 504 loans offer:
Application Process
Work with a Trusted Dallas SBA Loan Specialist
Working with a Texas-based lender who understands the SBA process can save time, reduce paperwork, and improve your approval odds. We specialize in helping local businesses in Dallas, Fort Worth, and beyond secure SBA 504 loans for commercial property.
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Let us walk you through the SBA 504 process, step by step. Our Dallas experts are here to help you secure the best financing for your commercial real estate investment.
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