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