Ask the Experts

Q2: What happens if the borrower is purchasing an existing business? Is the project automatically considered an “existing business” (i.e. a “change of ownership”?

A2: If a "change of ownership" results in new day-to-day management, new clientele, new demographics, or a different product line, then it would be considered "new." If you have a project that you would like considered under the 504 loan program, it is always beneficial to consult your local FFCFC representative early on in the process. Our staff can assist you in a proper classification and structure of a project. They can also help you pre-clear a “new” or “existing” business determination with the U.S. Small Business Administration. Click here for the FFCFC representative for your area.

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