Ameritrust CDC

June 2024

SBA 504 Rates

25yr  6.35%

20yr  6.44%

10yr  6.90%


Ameritrust CDC's Commitment

Ameritrust CDC's mission statement is to provide our lending partners and their clients with the highest level of customer service within our industry. Each small business is unique and deserves 100% of our efforts and attention through every step of the process. We pride ourselves on providing fast, efficient, knowledgeable and honest responses to each transaction. We look forward to demonstrating our commitment and earning your business by adhering to our company philosophy. Please let us know how we can be of assistance on your next 504 loan.

SBA 504 Loan Program

The SBA 504 loan program is a unique financing tool. It provides small businesses long term fixed-rate financing to purchase or construct a new building, remodel an existing building or purchase equipment.  Ameritrust CDC (Certified Development Company) is a private, nonprofit corporation which is set up to facilitate and promote the SBA 504 loan program which contributes to the economic development of its community.  Ameritrust CDC works in partnership with the SBA and private sector lenders to provide this financing to small businesses.

Eligible Uses of SBA 504 Loans

  • Acquisition of vacant land.
  • Acquisition of existing building.
  • Construction of new building.
  • Major renovations and/or additions to existing building.
  • Marine facility acquisition, including fishing vessels and commercial boats.
  • Purchases of capital equipment, including heavy machinery.
  • Tenant improvements – leased facility or land.
  • Associated cost such as title and insurance, appraisals, environmental reports, surveys, equipment installation, points on interim loans, furniture and fixtures, etc.

Eligibility Criteria

The Small Business Applicant must:

  • Be an operating business.
  • Be organized “for profit” (legal entity- corporation, partnership, sole proprietor, limited liability company.
  • Be located within the U.S.
  • All owners with 20% ownership or more must give a personal guarantee.

Meet SBA size standards which are:

  • The small business applicant and its affiliates must have:
  • A tangible net worth of $15 million or less and
  • An average net income after federal income taxes (excluding any carry-over losses) for the preceding two completed fiscal years of $5.0 million or less.
  • Meet job creation goals of the program (currently 1 job for every $65,000 of the SBA debenture) or meet a public policy goal.

Meet Occupancy Requirements which are:

  • If the project is to purchase an existing building, the small business MUST occupy at least 51% of the total rentable space.
  • If the project is to construct a new building, the small business must occupy 60% of the rentable space; may temporarily lease 20% with the intent to occupy within 10 years; and permanently lease out the remaining 20%.
  • Multiple borrowers may partner to occupy the required percentage.
  • Unused space can be leased out with leasehold income considered in determining repayment ability.

Owners Equity Injection

  • Must be personal or business cash.
  • May come from equity in existing land or real estate- if owned 2 years or more.
  • Value of equity is determined by actual cost or appraisal.
  • Must have owned real estate longer than two years in order to use the appraised value.
  • The 504 program can accommodate pre-existing debt on project assets.
  • New businesses established within 2 years require 15% down.
  • Established businesses purchasing single-purpose properties require 15% down.
  • New businesses purchasing single-purpose properties require 20% down.

Maximum Debenture Loan Sizes

  • Maximum debenture loan size = $5,000,000.
  • Manufacturers maximum debenture loan size = $5,500,000.
  • Maximum debenture loan size can also go to $5,500,000 if small business applicant can demonstrate a 10% energy cost savings for new construction or renovation.
  • Plant, equipment and process upgrades of renewable energy sources such as the small-scale production of energy for individual buildings or community consumption, commonly known as micropower or renewable fuel producers including biodiesel and ethanol producers.
  • (LEED) standards for green building certifications.