The SBA 504 loan can be used for the following purposes:

• Land purchase (as part of building construction)
• Owner-occupied real estate purchase (must occupy at least 51% of the space)
• Building construction (must occupy at least 60% of the space initially, with no more than 20% leased to a third party)
• Building renovations
• Machinery & equipment with a useful life of at least 10 years
• Refinancing commercial real estate and/or equipment debt
• Furniture, fixtures, and equipment (if part of real estate project, minor cost, and essential to the business)
• Professional fees (architect, appraisal, environmental)
• Soft costs (closing costs, interim interest during construction/renovation)
• Contingency (up to 10% of construction/renovation costs)