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SBA 504 Loan Program.

SBA 504 provides long-term, fixed-rate financing for eligible owner-occupied real estate, facilities, and major equipment through a Certified Development Company and lender.

Offered byU.S. Small Business Administrationverified 2026-07-10

Overview

What it does.

The program is designed for fixed assets that support business growth and job creation. A Chester borrower works with a Certified Development Company and a participating lender; it is not a direct SBA grant or general working-capital loan.

Best for: Owner-occupied commercial property acquisition, construction, renovation, modernization, or long-life equipment.

Eligibility

Who and what may qualify.

Eligible applicants

  • Eligible for-profit U.S. small businesses meeting SBA financial and size requirements
  • All direct and indirect owners must be U.S. citizens or U.S. nationals whose principal residence is in the United States, its territories, or possessions

Applicants excluded by the source

  • Nonprofit businesses
  • Passive or speculative businesses
  • Businesses unable to meet owner-occupancy or other SBA requirements
  • Businesses with any direct or indirect owner who does not meet SBA's current citizenship, nationality, and principal-residence requirements

Eligible uses

  • Purchase or construction of owner-occupied buildings and land
  • Improvement or modernization of facilities
  • Long-life machinery and equipment
  • Qualified debt refinancing under SBA rules

Uses excluded by the source

  • Working capital
  • Inventory
  • Speculation or investment in rental real estate
  • Unqualified debt refinancing

Application

How to start.

  1. Confirm that the project is an eligible fixed-asset use
  2. Contact a Certified Development Company serving Illinois
  3. Prepare business, financial, property, environmental, and project documentation with the CDC and lender

Timing: Certified Development Companies accept project inquiries on a rolling basis.

Planning notes

Limits to account for.

  • Cannot fund working capital or inventory
  • Property generally must meet SBA owner-occupancy requirements
  • Passive rental real-estate investment is not eligible
  • Current SBA policy requires 100 percent qualifying U.S. citizen or U.S. national ownership and qualifying principal residence

Often structured with a conventional lender loan and borrower equity; other incentives require coordinated lien, collateral, and eligible-cost review.

Evidence

Official sources.