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What Do the 1980’s Have to Do with SBA 504 loans?

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When it comes to top TV catchphrases of the 1980s, “Don’t have a cow, man” may top the list (The Simpsons, 1989). For us, the immortal words of Cliff Clavin from the sitcom Cheers come to mind when we think of SBA 504 loans: “It’s a little known fact that…”

Granted, Cliff’s little known facts were “little known” for a reason. But the team here at Seedcopa has found that when we share the following with borrowers, they’re ready to hear more:

  1. Most of the businesses that Seedcopa encounters meet the SBA’s guidelines for eligibility. Exceptions include gambling enterprises, the adult industry and cannabis. Basically: If your mother wouldn’t approve, maybe the SBA wouldn’t either.
  2. Are you a startup? Many people don’t realize that they’re not required to be an existing business to obtain a new SBA 504 loan. Note that new businesses must put an additional 5% down.
  3. Depending on the loan amounts, borrowers can have multiple 504 loans at a time. For instance, we recently worked with a car wash on their fourth 504 loan with Seedcopa as the business expanded to multiple locations across the region. There is a limitation on the total balance of all outstanding 504 loans, and this varies depending on the situation.
  4. Businesses must plan on occupying 51% of the square footage of the building they intend to buy or 60% if it’s new construction.
  5. Refinance now! Businesses that have been in operation for at least two years can refinance their existing commercial loan. Requirements include that the business must have been in continuous operation for the last two years, the debt must be at least six months old and the business must occupy at least 51% of the square footage of the building.



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For almost forty years, Seedcopa + SeedcoDE has helped businesses get the money they need to start, grow and expand. We are proud that the loan programs we work with promote economic development.

Together with economic development partners throughout Pennsylvania and Delaware, we help to grow local businesses, create and retain jobs and stimulate local communities.

Our team has over 75 years of combined government lending experience and a dedication to excellent customer service. After our initial assessment of your project, our commitment is to get you approved and closed.

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