Item 1
504 Project Cost Worksheet
Purchase Land…………………………………………………
$__________________
Purchase Land & Improvements……………………………
$__________________
Purchase Improvements…………………………………….
$__________________
Add an Addition to a Building……………………………….
$__________________
Make Renovations to a Building……………………………….
$__________________
Construct a Building…………………………………………….
$__________________
Make Building Leasehold Improvements…………………….
$__________________
Purchase/Install Equipment……………………………………
$__________________
Furniture/Fixtures……………………………………………….
$__________________
Refinanced Debt…………………………………………………
$__________________
Professional Fees…………………………………………….
$__________________
Other Expenses………………………………………………….
$__________________
TOTAL 504 PROJECT COST:
$__________________
Non-504 Financing Requested:
Working Capital
$__________________
Inventory
$__________________
Other (describe below)
$__________________
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SBA 504 Loan Eligible Uses of Proceeds
a.
b.
c.
d.
e.
Purchase Land
1.
Purchase price of land
2.
Previously acquired land may be included in the 504 Project. If acquired within two
years land will be valued at cost. If owned for more than two years land will be
valued by an appraisal
Site Improvements
1.
Grading, paving, landscaping, hook ups, curb and gutter, etc.
2.
No more than 5% of total project costs can be for “community” (off-site) improvements
Purchase of Land & Improvements (one or more existing building(s), Purchase
Improvements (Building only, Land is leased)
1.
Company must occupy 51%
2.
No time limit on occupying the 49% leased space
Add an addition or renovate existing buildings
1.
Convert, expand, or renovate one or more existing building(s).
2.
Cannot improve tenant space, however, certain HVAC and basic electrical and
plumbing fit out can be included.
New Construction
1.
Construction of one or more new building(s)
2.
Can permanently rent 20% if:
2.1 60% of total sq. ft. is immediately occupied by borrower
2.2 Borrower occupies some of the remaining space within 3 yrs.
2.3 Borrower will occupy all of the remaining space within 10 yrs.
or
2.4 Borrower occupies at least 67% of total sq. ft. and rents 33% for
10 years. Occupies all of space after 10 years.
3.
Cannot improve/finish tenant space
4.
10% of total construction costs can be added to the Project as contingency for cost
overruns
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f.
g.
h.
i.
Purchase/ Install machinery and equipment, Furniture and Fixtures
1.
Cost includes installation
2.
Assets must have useful life of ten years
3.
Assets must be at a fixed location (no rolling stock)
4.
Assets having less than a ten-year useful life are eligible if the assets such as
furniture, fixtures and equipment are essential to and a minor part of the 504 project
Direct and essential professional fees for the project
1.
Title Insurance
2.
Architect
3.
Engineering
4.
Environmental (can include cleanup)
5.
Appraisal
6.
Municipal hookups
7.
Survey
8.
Legal (directly related to project – i.e., zoning or other land use approvals, legal
searches, title insurance, recording fees) legal fees associated with the closing are
not eligible.
9.
Accounting ; Those costs directly related to the project for example preparation of
interim financial statement, projections and similar charges.
Other Expenses (repayment of interim financing costs)
1.
Points paid to Lender for only the interim financing of the 504 portion.
2.
Interest paid to the Lender for the interim financing of the 504 portion until the funding
of the SBA 504 Loan. Point(s)
Refinanced Debt
Portion of existing debt that would have been eligible for 504 loan financing at the time of
original financing can be refinanced in a current project.
Project expenses, other than land purchase, incurred within nine months prior to receipt by SBA of a
complete loan package can be included in the Project. The SBA may extend or waive the period of
time for good cause.
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