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Breaking the $5M Barrier: Exceeding SBA Loan Limits for Green and Manufacturing Dreams

The $5 million SBA 7(a) loan cap might feel like a brick wall for ambitious small businesses, especially in capital-intensive industries. But don't fret, SBA 504 allows for much larger projects and SBA financing, unlocking additional funding! SBA allows a larger loan cap which allows projects as big as $20 million.

For most businesses, the SBA 504 allows up to $5 million 2nd lien notes behind the lender’s conventional notes, but for real estate that meets green energy initiatives or businesses that are classified as small manufacturers, the limit is increased to $5.5 million with the ability to do multiple projects.

SBA 504 Green Loan Program

Brace yourself for a double dose of green – Unlike traditional 504 loans, this program allows multiple loans with a total SBA cap of $16.5 million. Think solar panels and energy-efficient building upgrades – each project can have its own green loan, potentially financing up to $5.5 million for a single project. For example, now you can use SBA 504 to finance several franchised daycare locations or multiple distribution centers!

SBA 504 Small Manufacturer Loan Program

Small manufacturers can also access a $5.5 million cap on top of the conventional first mortgage and your equity contribution. This powerhouse combination can turn your manufacturing dreams into reality. Factories and warehouses are quite expensive to purchase or construct, and the heavy machinery and equipment to outfit or upgrade operations are also costly.

We Can Help

Partner with an advisor at Community Business Finance to leverage our experience navigating the funding landscape and confidently secure the resources you need. Give us a call today!