What Are the Specific Job Creation Requirements for an SBA 504 Loan?

Jun 29, 2024


The SBA 504 loan program provides long-term, fixed-rate financing for small businesses to acquire major fixed assets. A key aspect of this program is its job creation and retention requirements, which are essential for businesses to understand when seeking funding.

**Job Creation Requirements**

1. **Standard Requirement**
   - **One Job per $75,000**: Businesses must create or retain one job for every $75,000 of the SBA loan amount.

2. **Small Manufacturers**
   - **One Job per $120,000**: Manufacturing businesses must create or retain one job for every $120,000 of the SBA loan amount.

**Job Retention Criteria**

Businesses may count job retention towards meeting the requirement, particularly if jobs would be lost without the loan.

**Public Policy Goals and Exceptions**

1. **Community Development**
   - If unable to meet standard requirements, businesses can qualify by fulfilling public policy goals like improving the local economy or assisting manufacturing firms.

2. **Energy Efficiency**
   - Projects reducing energy consumption by at least 10% or generating renewable energy can qualify without meeting standard job creation requirements.

3. **Rural Development**
   - Projects in rural areas can qualify by meeting rural development goals.


Businesses must maintain records and documentation to verify job creation or retention, including payroll records and employment agreements.

White watercolor paper texture


Understanding the job creation requirements for an SBA 504 loan is crucial for securing funding. For expert guidance and support, Atlantic Commercial Mortgage Broker can help businesses navigate the SBA 504 loan process and achieve their growth and job creation goals.