The Small Business Administration has many loan programs designed to help fund the ventures of profit-seeking small businesses. However, this is by no means the full extent of the funding they provide or facilitate. Today, we’ll be discussing the 504 SBA Loan program and what it does.
The 504 SBA Loan program is exclusively for nonprofit organizations. Specifically, you must be looking for long-term financing for a brick-and-mortar venture. So, if you are looking to finance temporary expenses, you’ll want to do that in another way. The financing is provided for specific types of nonprofit organizations as well. It is not universally available to all types.
So, for what type of nonprofit organization is the 504 SBA Loan Program designed? You must be operating a brick-and-mortar operation in an area that is considered underprivileged and in need of assistance. The criteria can be quite nebulous, so you’ll likely be better served simply asking if your area qualifies or not.
Your company must be engaged in activities that are beneficial to the area where they are performed. For example, perhaps you run a shop that rents out and gives away painting supplies to local residents. These residents could come in to get these supplies in order to beautify their homes, fences, exterior walls, and their neighborhood. This would be an example of a company that operates out of underprivileged neighborhoods and provides help to the community.