Good news for small businesses with big dreams! The SBA's applicant affiliation guidelines were recently revised and opened the door wider for companies seeking loans under the SBA 504 Loan Program. This powerful program helps businesses access funding for large-dollar projects such as real estate acquisition, ground-up construction, and heavy equipment purchases.

What changed?

Previously, complex affiliation rules limited which businesses could qualify. Now, the SBA has simplified things:


  • Less ownership control required: The percentage of ownership needed to trigger affiliation has been raised, allowing more companies to qualify on their own.
  • Guarantee maximum clarified: Individual owners can now exceed the $5,000,000 guarantee limit when applying on behalf of a business that is not defined as an affiliate with existing SBA loans.
  • Franchise flexibility: Franchises can breathe easier. The SBA will now consider factors beyond just control, giving more franchisees access to the program. The official SBA franchise directory was shuttered to coincide with the new SOP rolled out in 2023.
  • Family ties loosened: Presumption of affiliation between family members has been redefined, opening opportunities for businesses with family involvement.

The bottom line?

More businesses can now tap into the SBA 504 program's attractive benefits:

  • Lower equity requirements: Take advantage of down payment requirements of as low as 10% of the total project costs inclusive of closing cost to conserve working capital.
  • Longer amortization terms: Enjoy longer repayment periods up to 25 years, making your loan payments more manageable.
  • Lower interest rates: Compared to traditional bank loans, 504 loans offer competitive rates, saving you money over the long haul.
  • Strong financing partnership: The 504 program involves collaboration with a Certified Development Company (CDC) who provides guidance and support throughout the process.

Don't let outdated affiliation rules hold you back. This is your chance to secure the funding you need to build your dream!  Contact Community Business Finance to discuss your eligibility and unlock the potential of the SBA 504 program.