Use of 504 Funds

April 13, 2006

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The purposes for which a 504 loan can be obtained are "bricks and mortar" type expenditures, including:

purchasing existing buildings
purchasing land and land improvements such as grading, street improvements, utilities, parking lots and landscaping
construction
modernizing, renovating or converting existing facilities
purchasing machinery and equipment that will have a useful life of at least 10 years
financing a construction contingency fund
paying interest on interim financing
paying professional fees directly attributable to the project, such as surveying, engineering, architect, appraisal, legal and accounting fees

Warning

CDC loan funds cannot be used for working capital or inventory, short-term needs, consolidating or repaying debt, refinancing, or financing a plant not located in the U.S., its territories and possessions.