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Are there special requirements of the principals (owners) with an SBA 504?

April 26, 2017owners principals requirements SBA special

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Are there special requirements of the principals (owners) with an SBA 504?

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Owners must be US citizens or registered aliens with green card. Owners cannot be convicted felons currently on probation. Anyone who owns 20% or more of the operating company must personally guarantee (unsecured general guarantee). Liquid assets of the principals are taken into account in determining eligibility. Too much liquid assets owned by a principal could disqualify the loan because it will be deemed that the project could be financed by the principal without SBA 504 assistance.