Use of 504 Funds

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.