Why the percent exists
504 finances plant and long-lived equipment through a CDC debenture. Standard authority is $5 million, or $5.5 million for a qualifying small manufacturer or energy public-policy project (Source: SBA 504). Occupancy keeps the project from becoming a speculative landlord play. Buying the plant with the business is the real-estate home. SBA 504 is the program noun. 7(a) is a different box with a $5 million cap (Source: SBA 7(a)).
Name the vacant bays and the lease-up plan. Do not hide a third of the building as future expansion if 504 needs 51 percent on day one. New construction’s 60 percent test has staged rules. Confirm them with the CDC. Phase I still runs if the building is in the project. AAI’s 180-day stale window still applies. Occupancy does not waive dirt work. 7(a) is a different program. Do not copy 504 percents onto a working-capital 7(a).
How it works still wants the floor plan. The 504 owner is the process home. Buying the plant is the real-estate home. This page stays on the percent noun. Jason Taken does not certify CDC eligibility.
Does meeting occupancy skip environmental work?
No. If the building is in the project, expect Phase I under 40 C.F.R. Part 312. One-hundred-eighty days is the usual stale window. Occupancy percentages do not waive All Appropriate Inquiries.
Name the vacant bays and the lease-up plan. Do not hide a third of the building as future expansion if 504 needs 51 percent on day one. New construction’s 60 percent test has staged rules. Confirm them with the CDC. Phase I still runs if the building is in the project. AAI’s 180-day stale window still applies. Occupancy does not waive dirt work. 7(a) is a different program. Do not copy 504 percents onto a working-capital 7(a). Job-creation tests are a third eligibility pile.
How it works still wants the floor plan. FAQ owns the questions. The 504 owner is the process home. Jason Taken does not certify CDC eligibility.
How a CIM should treat extra square footage
Name the vacant bays and the lease-up plan. Do not hide a third of the building as “future expansion” if 504 needs 51 percent on day one.
| Project type | Occupancy test | Not a waiver of |
|---|---|---|
| Existing building | ≥51% | Phase I / AAI |
| New construction | ≥60% (staged rules) | CDC eligibility |
| 7(a) working capital | Different program | 504 percents |
A refinance notice, if one is live, is notice-specific. Do not publish that a refi is available on this file without the current CDC notice. From 2026-07-04, outstanding 7(a) does not reduce 504 maximums under Policy Notice 5000-879058, and combined SBA-backed financing can reach 10 million when both programs fit. Those credit facts still do not rewrite occupancy. Vacant bays still have to meet 51 percent on an existing building on day one unless the CDC says the staged rule applies.
Job-creation tests (one job opportunity per 95,000 guaranteed, or 150,000 for a small-manufacturer or energy public-policy project from 2025-10-01) are a different eligibility pile. Confirm current figures with the CDC. How it works still wants the floor plan before anyone assumes 504 fits. FAQ owns the questions. The glossary hands you to the 504 owner, then to a confidential intro call. Jason Taken is a business broker. He does not certify CDC eligibility.
If a third of the building is a tenant you need for rent, measure the occupied share before anyone assumes 504 fits. Rent can be useful. It can also break the 51 percent test on an existing building. The CDC, not the CIM, decides. The 504 owner page keeps the rest of the eligibility pile.
A mezzanine or a vacant high-bay that the CIM calls “expansion” still counts in the denominator. Measure it. If the borrower will not occupy it on day one, the 51 percent test on an existing building can fail. Staged rules on new construction are CDC questions. Combined 7(a) and 504 capacity, when both programs fit, still does not rewrite occupancy. The 504 owner keeps eligibility. This page stays on the percent.
What this page will not do
It will not certify CDC eligibility. Jason Taken is a business broker. The glossary sends you to the owner. After the noun is straight, book a confidential intro call.