FAQ

The Utah CDC 504 Loan Program provides long-term, fixed rate financing of up to $5 million for major fixed assets that promotes business growth and job creation. We are certified and regulated through the Small Business Administration.

You are eligible for a 504 Loan if your business:
• Operates as a for-profit company in the United States or its possessions
• Has a tangible net worth of less than $15 million
• Has an average net income of less than $5 million after federal income taxes for the two years preceding your application

You must also have:
• Qualified management experience
• A feasible business plan
• Good character
• Ability to repay the loan

Ineligible Businesses include:
• Non-profit businesses (for-profit subsidiaries may be eligible)
• Businesses engaged in lending (banks, life insurance companies, finance companies, factoring companies, investment companies, bail bond companies, other businesses whose stock in trade is money)
• Passive Businesses except Eligible Passive Companies
• Life Insurance Companies
• Businesses located in a foreign country or owned in whole or in part by undocumented (illegal) aliens
• Businesses selling through a pyramid plan
• Businesses engaged in legal gambling activities
• Businesses engaged in illegal activity
• Businesses that restrict patronage or have discriminatory hiring practices
• Government-owned entities, excluding Native American Tribes
• Loan proceeds for religious activity
• Businesses engaged in SBA Loan Packaging
• Equity interest by SBA Lender or Associates in applicant concern
• Businesses providing prurient sexual material
• Businesses with a prior loss to the government
• Businesses with delinquent Federal debt
• Businesses primarily engaged in political or lobbying activities
• Businesses primarily engaged in speculation
• Persons who are Incarcerated, on probation, or on parole
• Persons who are currently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are being brought in any jurisdiction

Eligible use of proceeds include:
• Acquiring land
• Improve a site
• Purchase an existing building
• Convert, expand, or renovate an existing building
• New Construction
• Acquire and install fixed assets
• Refinance certain outstanding business debts

Ineligible use of funds include:
• Any purpose that does not benefit the small business
• Floor plan financing
• Revolving lines of credit
• Investments in real or personal property acquired and held primarily for sale, lease, or investment
• Payment of delinquent taxes 

When you complete our application, we will need the following:
• A comprehensive history and description of the business (You may use our form OR provide your own)
• Federal tax returns for the last 3 years for BOTH the operating business and the real estate holding company, if applicable. (Provide the FULL return as submitted to the IRS)
• Interim financial statement (balance sheet and profit & loss statement dated the same day) which is current within the last 90 days for BOTH the operating business and the real estate holding company, if applicable
• Business debt schedule for both the operating business and the real estate holding company, if applicable. Must match interim financial statements and have the same dates. (You may use the form included in the packet, or another form if it provides the same detail.)
• For a new business (less than 2 years of operations): Provide monthly cash flow projections and assumptions for the next 12 months, annual projections for 2 additional years (3 years total), and a proforma balance sheet
• Personal resume for each principal, owner, and key management individuals. Include experience, education, certifications, etc. to highlight why you are qualified. (Our form is required. You may include your own resume along with our form if desired.)
• SBA Form 1244 Personal History Statement along with a copy of your driver license. A separate form is required for each officer, director, and key management individual (regardless of ownership) AND each proprietor, partner, and stockholder with 20% or more ownership in either the operating business or the real estate holding entity
• Personal Financial Statement for each principal, owner, and key management individuals. If married: SBA requires the spouse’s information and signature on this form. This does not commit the spouse to be a guarantor on the loan. (SBA required form included in packet. Make sure it is filled out completely, signed, and dated.)
• Personal tax returns for each principal, owner, and key management individuals for the last 3 years. (Provide the FULL return as submitted to the IRS.) 

From application to funding, approximately 90 days due to higher workload during this pandemic recovery time. 

Yes! Or even more. You are not limited to the number of SBA loans, but to the maximum lending limit of $5 million or $5.5 million.

For the 504 Loan, 10% is the general standard equity requirement.

There are a few things that are essential to obtain as soon as possible once SBA has approved your loan as they are time consuming to complete.  These items that are prone to slow down the process are:
• Life Insurance
• Appraisal
• Environmental Report