SBA Form 1244 Application for Section 504 Loans

What Is SBA Form 1244?

This is a legal form that was released by the U.S. Small Business Administration on December 1, 2021 and used country-wide. As of today, no separate filing guidelines for the form are provided by the issuing department.

FAQ

Q: What is SBA Form 1244?A: SBA Form 1244 is an application form for Section 504 loans administered by the Small Business Administration (SBA).

Q: What is a Section 504 loan?A: A Section 504 loan is a type of loan provided by the SBA to fund fixed assets for small businesses, including real estate, renovations, and equipment purchases.

Q: Who is eligible to apply for a Section 504 loan?A: Small businesses that operate for profit and meet the SBA's size standards, as well as non-profit organizations, are eligible to apply for Section 504 loans.

Q: What can Section 504 loans be used for?A: Section 504 loans can be used to finance various fixed assets, such as purchasing or renovating commercial real estate, buying machinery or equipment, and making energy efficiency improvements.

Q: What is the purpose of SBA Form 1244?A: SBA Form 1244 is used to apply for a Section 504 loan and provides the SBA with information about the borrower, their business, and the project for which the loan is being sought.

Q: Do I need to submit any supporting documents with SBA Form 1244?A: Yes, along with SBA Form 1244, you will need to provide supporting documents such as business financial statements, tax returns, project cost estimates, and collateral information.

Q: Is there a fee to submit SBA Form 1244?A: Yes, there is a fee associated with submitting SBA Form 1244, which covers the SBA's processing costs.

Q: How long does it take to process a Section 504 loan application?A: The time it takes to process a Section 504 loan application can vary, but it typically ranges from several weeks to a few months, depending on the complexity of the project and the completeness of the application.

Q: Can I apply for a Section 504 loan if I have bad credit?A: While credit history is a factor considered in the application process, having bad credit does not automatically disqualify you from getting a Section 504 loan. Other factors like collateral and business viability will also be considered.