.svg){kind=small}
.svg){kind=small}
.svg){kind=small}
Miami small businesses seeking to purchase commercial real estate or equipment face specific requirements when applying for SBA 504 loans. Understanding these requirements upfront helps streamline the application process and positions your business for approval. Here's what Miami businesses need to know about qualifying for this valuable financing program.
Your Miami business must meet fundamental criteria. You must operate as a for-profit entity with tangible net worth not exceeding $20 million and average net profit after taxes not exceeding $6.5 million (averaged over the previous two years).
For real estate purchases, your business must occupy at least 51% of existing buildings or at least 60% of new construction. You can lease unused space with a plan to expand into it, making the program flexible for growing Miami businesses.
Miami businesses must provide three years of complete business tax returns, current financial statements including balance sheet and profit/loss statement, a debt schedule listing all current business debts, and personal financial statements from all owners with 20% or more ownership.
While SBA 504 loans don't have rigid credit score requirements, FBDC evaluates your payment history, business cash flow, and ability to service new debt. Personal guarantees are required from all owners with 20% or more ownership. The property itself serves as primary collateral.
The required 10% down payment can come from business cash reserves, personal funds from owners, gifted funds with proper documentation, or seller financing with specific restrictions.
Miami businesses can finance commercial buildings like office spaces and warehouses, industrial facilities including manufacturing plants and distribution centers, special-use properties such as hotels and medical facilities, and land for constructing new facilities.
SBA 504 loans can also finance machinery and equipment with a 10+ year useful life, making them versatile for businesses that need both real estate and equipment.
Funds cannot be used for working capital, inventory, or investments in rental property unless owner-occupied requirements are met. Certain business types also cannot qualify, including passive investment companies, gambling businesses, religious organizations, and lending institutions.
Miami's diverse economy means different industries have unique considerations. Hospitality businesses like hotels and restaurants qualify but must demonstrate operational history and management experience. Medical practices easily qualify when owner-occupied. Import/export businesses are eligible when maintaining Miami facilities for operations. Professional services including law firms, accounting practices, and consultancies qualify for office purchases.
Miami properties often require additional assessment for flood zone determinations, hurricane damage history, and environmental contamination, especially for former gas stations or dry cleaners. Miami's competitive market means quick decision-making is essential, and pre-qualification strengthens your offers in multiple offer situations.
Many Miami businesses have international components. Foreign nationals must have permanent resident status, and 100% of ownership must be U.S. citizens or permanent residents. International revenue is acceptable as long as you maintain U.S. operations.
FBDC's streamlined process targets 14 days for SBA approval from a complete application, with bank approval running concurrently. Total closing typically takes 2-3 weeks after approvals, meaning many Miami businesses close within 45 days.
Strengthen your application by organizing all financial records, addressing any credit issues upfront, demonstrating stable or growing revenue, and maintaining strong bank account balances. Present your business effectively with a clear business plan, detailed use of loan proceeds, and documentation of management team experience.
Florida Business Development Corporation offers 35+ years of SBA lending experience, a dedicated South Florida team, relationships with Miami-area banks, and bilingual support services. We understand local market conditions and can guide you through Miami-specific requirements efficiently.
Meeting SBA 504 loan requirements opens access to valuable financing benefits: only 10% down payment required, fixed rates for up to 25 years, long-term predictable payments, and preservation of working capital. Miami's dynamic economy rewards businesses that secure strategic locations through smart financing.
To discuss your Miami business's eligibility for SBA 504 financing, contact Florida Business Development Corporation at (813) 348-0660 or visit fbdc.net. Our South Florida team provides expert guidance through every step of the qualification and application process.
