Top Reasons to Get a Section 504 Loan
The CDC/504 loan program is a long-term financing tool that provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. This list summarizes the types of things a Section 504 Loan will fund.
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The CDC/504 loan program is a long-term financing tool that provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. This list summarizes the types of things a Section 504 Loan will fund.
- Installation or repair of sanitary disposal systems, together with related plumbing and fixtures, that will meet local health department requirements
- Payment of reasonable connection fees, which may include assessments for utilities (i.e., water, sewer, electricity, or gas), which are required to be paid by the applicant and which cannot be paid from other funds
- Energy-conservation measures such as insulation and combination screen-storm for windows and doors
- Repair or replacement of heating system
- Electrical wiring
- Purchasing existing buildings
- Purchasing land and land improvements, such as grading, street improvements, utilities, parking lots, and landscaping
- Repair or replacement of roof
- Replacement of deteriorated siding
- Payment of incidental expenses such as surveys, title clearance, loan closing, and architectural or other technical services
- Paying professional fees directly attributable to the project, such as surveying, engineering, architectural, appraisal, legal, and accounting fees
- Necessary repairs to mobile/manufactured homes provided the loan applicant owns the home and site and has occupied the home prior to filing an application with USDA Rural Development and the mobile/manufacture home is on a permanent foundation or will be put on a permanent foundation with Section 504 funds
- Additions to dwellings with grant funds (conventional, manufactured, or mobile) only when it is clearly necessary to remove health or safety hazards to the occupants
- Repair or remodel houses to make accessible and usable for handicapped or disabled persons
- Payment of application packaging fees under certain conditions
Source: USDA Rural Development (www.rd.usda.gov)—An arm of the U.S. Department of Agriculture, this agency helps ensure that rural citizens can participate fully in the global economy. Contact them at 200 4th Street SW, Federal Building, Room 210, Huron, SD 57350.
