Must be for-profit and can be a corporation, partnership, sole proprietorship, or a limited liability company.


Some types of eligible businesses include manufacturing, wholesale, service, professional service, or retail.


Must be located in or planning to locate to Nebraska.

Small Business

Net worth under $15 million and net profits under $5 million or meet SBA’s other size standards.


The use of loan proceeds for capital investment (land, building, leasehold improvements, renovation, construction, machinery, or associated soft costs). The proposal must also seek to achieve an economic development goal. To view these goals, please see 504 FAQs.


A lender must be willing to participate in the financing as the 504 loan only finances up to 40% of the total project cost. The lender finances 50% and the business contribution is dependent upon the business history or type of project.


The owner-user of the project being financed is required to occupy at least 51% of an acquired existing building or 60% if it’s newly constructed. Two or more unrelated small businesses can receive an SBA 504 loan if they combine to meet occupancy requirements of 51% for an existing building or 60% on new construction.

There are many different businesses and organizations that are not eligible for SBA 504 loans.

  • A not-for-profit (exception for sheltered workshops)
  • Engaged in lending: a passive holder of real estate and/or personal property; a life insurance company (however an insurance agency is eligible)
  • Located in a foreign country or owned by aliens who do not have legal permanent resident status
  • Has restriction on patronage
  • A government-owned entity (exception for Native American tribes)
  • Engaged in promoting religion
  • Consumer and marketing cooperatives (producer cooperatives are eligible)
  • Engaged in loan packaging
  • Owners or associates of poor character
  • Equity interest by lender, CDC, or associates in applicant concern
  • Provides prurient sexual material
  • Has previously defaulted on a federal loan
  • Engaged in political or lobbying activities
  • Speculative businesses

To be eligible for SBA 504 loans, there are principals that need to be met by applicants.

  • Owners must be U.S. citizens or registered aliens with green cards
  • Owners cannot be convicted felons or currently on probation
  • Anyone who owns 20% or more of the operating company must be a guarantor (unsecured general guarantee)
  • Liquid assets of the principals are taken into account in determining eligibility, too many liquid assets owned by a principal could disqualify the applicant as it could be deemed that the principal does not need SBA 504 assistance

Getting Started

After speaking with a lending institution about the project, call NEDCO and talk to a loan officer.

Submit the NEDCO application, which includes:

Two years of financial statements and federal tax returns on the company. If there is no historical cash flow, submit two-three years of financial projections.

Personal financial statements (assets and liabilities) on the owners of the company.

A written history of the business and reasons for expansion.

A copy of the contract of sale.

Personal history statements of the owners.

Download application materials to get started