The purposes for which a 504 loan can be obtained are "bricks and mortar" type expenditures, including:

• purchasing existing buildings
• purchasing land and land improvements such as grading, street improvements, utilities, parking lots and landscaping
• construction
• modernizing, renovating or converting existing facilities
• purchasing machinery and equipment that will have a useful life of at least 10 years
• financing a construction contingency fund
• paying interest on interim financing
• paying professional fees directly attributable to the project, such as surveying, engineering, architect, appraisal, legal and accounting fees

 

CDC loan funds cannot be used for working capital or inventory, short-term needs, consolidating or repaying debt, refinancing, or financing a plant not located in the U.S., its territories and possessions.