SBA 504 Loans for Florists

The eligibility requirements for an SBA 504 loan for a florist are as follows:

Your business must have a tangible net worth under $20 million.

You must operate as a for-profit entity (nonprofits are not eligible).

You must meet SBA size requirements that pertain to small businesses. Note that size requirements vary by industry, so there is no one-size-fits-all answer here. You can find the current business size requirements set forth by the SBA here.

Your average net income for the preceding two years prior to applying for the 504 program must be $5 million or less after income taxes.

You cannot be engaged in passive activities.

You cannot be engaged in speculative activities.

You must meet job creation requirements, or, alternatively, meet community development or public policy goals.

You cannot purchase and then hold real estate. Real estate purchased with the loan must be utilized for business needs.

You cannot be engaged in any form of lending.

You cannot have defaulted on a federal loan previously.

You cannot be involved in any sort of political activity or lobbying activity.

You cannot be involved in any form of gambling, nor can you operate a casino.

The loan must be repayable from cash flow generated by the project in question.

You must be able to provide the SBA with personal histories for all principals in your company.

You must have a business plan, and it must be deemed feasible.

You must plan to occupy at least 51% of the building if it is an existing structure, and 61% of the building if it is new construction.

Note that many businesses that qualify for 7(a) financing will also qualify for 504 financing, but not all, due to the more stringent requirements.

The benefits of an SBA 504 loan for a florist include the ability to make use of the thriving online marketplace, as well as a brick and mortar location. The funds can be used to purchase real estate or build a new location, as well as for purchasing or building a warehouse, greenhouses, and more. The money can also be used for purchasing necessary equipment, including coolers to keep arrangements and stock protected and healthy. Additionally, if your business has incurred growth-related debt, it can likely be refinanced into a 504 loan.

For more information, please visit SBA 504 Loans for Florists and What is the SBA 504 Loan?

The steps to apply for an SBA 504 loan for a florist are as follows:

Verify Eligibility: The first thing you must do is make sure that you are eligible for the program. Note that there are quite a few reasons for disqualification, including defaulting on student loans by a major owner within the business, criminal history, owning too many assets, and poor credit.

Check Your Credit: Note that the SBA has no credit requirements. However, the lender that you work with will. We discuss credit in the section of this site dedicated to SBA 504 loan rates.

Find a Lender/CDC: The next step can go one of two ways depending on your desires. You need to find either a lender that offers 504 loans, or a CDC in your area that can connect you with such a lender.

Pre-qualification: Before you start completing your SBA loan application, you should get prequalified. Your CDC or lender can do this for you. To prequalify you, the CDC will need:

Three years of personal and business tax returns

Interim financial documents

A personal financial statement

Decide on Your Purchase: With the pre-qualification in hand, you can begin looking at purchase options, vetting contractors, comparing equipment choices, and more.

Complete the Application: Once you've decided on what you're purchasing and have been prequalified, you can begin the application process. You'll work with your CDC and/or lender to complete a full SBA loan application. You will also finalize what you are seeking in loan terms at this time. There are quite a few things that will be addressed during the application process, although some will have been touched on during pre-qualification. These include:

Your creditworthiness

Your business's eligibility for the 504 loan program

Your business's current level of indebtedness

Find a Lender: If you have not already done so, you will need to find a lender that offers 504 loans. The loan application can be downloaded from the SBA as a PDF file here.

The SBA 504 maximum loan amount is currently set at $5 million in lifetime dollars. However, if your business is a small manufacturer, you can borrow up to $5.5 million in lifetime dollars. It should also be noted that if you decide to embark on energy-related projects that fall under the "go green" heading, you can borrow substantially more. Energy projects qualify for a $5.5 million debenture per project, and small manufacturers can hold an unlimited number of 504 loans tied to distinct projects (SBA, May 2026).

Source: https://sba504.loans/sba-504-blog/what-is-the-sba-504-maximum-loan-amount

SBA 504 loans have some of the lowest interest rates of any type of SBA financing. Rates are calculated like so:

• 10-year debenture: fixed, set at the monthly sale (4.69% note rate at the July 2026 sale)
• 20-year debenture: fixed, set at the monthly sale (5.01% at the July 2026 sale; 25-year: 5.04%)

However, it's essential to keep in mind that these loans cannot be used for equipment or working capital, and can only be used for the construction or acquisition of owner-occupied commercial real estate.

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