SBA 504 Loan Program

Minnesota Business Finance Corporation

The Minnesota Business Finance Corporation (MBFC) is a nonprofit corporation set up to contribute to the economic development of the central Minnesota region. As a 504 Certified Development Company (CDC), the MBFC works with the Small Business Administration and private sector lenders to provide financing to small businesses.

About SBA 504

Through the SBA 504 Loan Program, the MBFC provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings.

Typically, a private lender will provide 50% of the project financing while 40% is funded by a debenture guaranteed by the Small Business Administration. The remaining 10% is equity provided by the borrower. The extent of the SBA’s participation is usually $1,000,000 although $1.3 million may be available under certain circumstances.


  • To be eligible, the business must be operated for profit, have a tangible net worth of less than $7 million, and have an average net income that is less than $2.5 million after taxes for the preceding two years.


  • Loans must be used for fixed asset projects such as: purchasing land and improvements, including existing buildings, grading, street improvements, utilities, parking lots and landscaping; construction of new facilities, or modernizing, renovating or converting existing facilities; or purchasing long-term machinery and equipment.
  • Funds cannot be used for working capital or inventory, consolidating or repaying debt, or refinancing.
  • 1 job must be created for every $35,000 received.


  • Interest rates are pegged to an increment above the current market rate for 5-year and 10-year U.S. Treasury issues.
  • Terms of 10 or 20 years are available.
  • Fees typically total 3% of the debenture.



Swift County RDA

Phone: 320-842-4769


Nadine M. Kruize

Minnesota Business Finance Corporation

616 Roosevelt Road, Suite 200
St. Cloud, MN 56301

Phone: 320-255-1685

Category: State and Federal Financing

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