SBA 504 Loan Questions and Procedures
I'm looking into the SBA 504 program to purchase warehouse space. When looking at the requirements, it says you have to create a job for every $65k borrowed or satisfy some public policy goal. If you purchase a 650k warehouse, there's no way a small business can just hire 10 people all of a sudden. I'm just wondering how people satisfy this requirement.

Other things you can do is add income to the community. Does the property tax you generate and services you hire in the community count?

Another requirement is that you occupy 51% of the building. Sometimes buildings for sale have tenants already in them or have units you can lease out. How does the SBA check and verify this requirement?

When making the offer to buy a building, do you get approval first from the SBA or start the process after making the offer?

The eligibility depends on your personal credit score as one factor. Does the business have to buy the building or can you personally buy the building in your name with personal funds to keep the asset separate from the company? The company would then lease it from yourself.
[{"id": "eygi490", "text": "These are questions you should ask your banker. Usually banks will have a business development officer that specializes in SBA loans.\n\nI have some contacts that I can provide to you. Let me know if you need it.", "replies": [], "depth": 1}, {"id": "eyh8ix3", "text": "I went through a friend that worked for a company that did 504 loans.  I didnt have requirement to hire anyone.  I made an offer on building, they agreed, and I told my bank that I wanted a 504 loan through X.  You have a full year to occupy 51%.   Im not sure if they actually check after you but I would assume no.  \n\nYou can also use the loan to buy larger building if you expand.  \n\nThere are a lot of fees/paperwork in the 504.", "replies": [], "depth": 1}, {"id": "eyha955", "text": "You cannot use 504 to buy investment property. Unless you business can satisfy the program terms, just get some more equity and a traditional commercial loan. It's cheaper and easier.", "replies": [], "depth": 1}]