Frequently Asked Questions

The minimum dollar amount for a debenture is $25,000. The outstanding Gross Debentures issued for a small business concern, including affiliates, for Eligible Energy Public Policy. Projects must not exceed $16,500,000 in the aggregate

For all 504 Projects except for Eligible Energy Public Policy Projects and Projects for Small Manufacturers, the gross debenture is limited to an outstanding balance of $5,000,000 maximum in the aggregate for each small business concern, including its affiliates.

$5,500,000 maximum for each eligible project, defined as a business with its primary NAICS Code in Sectors 31, 32, and 33, and all of its production facilities are located in the United States.

Maturity of the 504 loan is 10, 20, or 25 years based upon the remaining useful life of the property being financed as follows:

i. A maximum of 25 years for real estate;

ii. A minimum of 10 years for machinery and equipment

a) Amusement parks;

b) Bowling alleys;

SOP 50 10 6 Part 2, Section C, Ch 1: 504 Eligibility through Submission of Application

Effective October 1, 2020 Page 479

c) Car wash businesses;

d) Cemeteries;

e) Cold storage facilities where more than 50% of total square footage is equipped for refrigeration;

f) Dormitories;

g) Farms, including livestock and dairy facilities;

h) Funeral homes with crematoriums;

i) Gas stations;

j) Golf courses;

k) Hospitals, surgery centers, urgent care centers, and other health or medical facilities;

l) Hotels, motels, and other lodging facilities;

m) Marinas;

n) Mines;

o) Nursing homes, including assisted living facilities;

p) Oil wells;

q) Quarries, including gravel pits;

r) Railroads;

s) Sanitary landfills;

t) Service centers (e.g., oil and lube, brake, or transmission centers) with pits and in-ground lifts;

u) Sports arenas;

v) Swimming pools;

w) Tennis clubs;

x) Theaters and auditoriums; and

y) Wineries

A limited-market property with a unique physical design, special construction materials, or a layout that restricts its utility to the use for which it was built.

A business is a Start-Up Business if it has been in operation (i.e., generating revenue from intended operations) for 1 year or less.

Child occupied facilities will have to provide a lead report (dated within1 year) organized by an environmental company confirming there are no signs of hazardous substance such as; any substance, material or waste regulated by CERCLA or any other Environmental Law, and specifically includes petroleum products.

Means a building, or portion of a building, constructed prior to 1978, visited regularly by the same child, under 6 years of age, on at least two different days within any week (Sunday through Saturday period), provided that each day's visit lasts at least 3 hours and the combined weekly visits last at least 6 hours, and the combined annual visits last at least 60 hours. Child-occupied facilities may include, but are not limited to, day care centers, preschools, and kindergarten classrooms. Child-occupied facilities may be located in target housing or in public or commercial buildings. With respect to common areas in public or commercial buildings that contain child-occupied facilities, the child-occupied facility encompasses only those common areas that are routinely used by children under age 6, such as restrooms and cafeterias. Common areas that children under age 6 only pass through, such as hallways, stairways, and garages are not included. In addition, with respect to exteriors of public or commercial buildings that contain child-occupied facilities, the child-occupied facility encompasses only the exterior sides of the building that are immediately adjacent to the child-occupied facility or the common areas routinely used by children under age 6.