SBA 504 Loans: Financing Solutions for Your Business

SBA 504 loans offer attractive financing options for a variety of businesses and purposes. These loans can be used to finance the purchase of land, existing structures, equipment, and even major renovations or the construction of a new facility.

Many different types of businesses are eligible for SBA 504 financing, as indicated by the Small Business Administration's data from the first quarter of 2023.

The top five business types that frequently use SBA 504 loans are:

Hotels and Motels:

In the first quarter, hotels and motels received $151.9 million in SBA 504 loans, with an average loan amount of $2.8 million. These loans can be used for renovations, expanding the number of guest rooms, or even constructing a new hotel.

Restaurants:

Both full-service and limited-service restaurants obtained over $103 million in SBA 504 loans during the first quarter, with an average loan amount of around $980,000. Restaurant owners often utilize these loans for significant renovations, upgrading kitchen equipment, and other related expenses.

Child Day Care Services:

Child daycare businesses secured a total of $52.5 million in SBA 504 loans, with an average loan amount of $1.5 million. These loans can be used to finance the purchase or construction of facilities, as well as equipment necessary for the operations.

Car Washes:

Car wash businesses obtained $39.7 million in SBA 504 loans, with an average loan amount of $2.3 million. The loans are often used to support the construction of purpose-built facilities, which are essential for car wash operations.

Trucking Companies:

Trucking companies received $35.4 million in SBA 504 loans during the first quarter, with an average loan amount of $2.1 million. Given the size and demand of the shipping industry, these loans are frequently used to support the growth and operations of long-haul and short-distance freight transport businesses.

These SBA 504 loans offer businesses in these industries the necessary capital for growth and expansion. Whether it's renovating properties, acquiring new assets, or constructing purpose-built facilities, these loans play a pivotal role in meeting the financial needs of these businesses.