SBA 504 Single Purpose Properties

 

The U.S. Small Business Administration classifies certain properties as “special purpose properties,” and requires a 15% down payment. The SBA defines a special purpose property as “a property that is appropriate for one use or limited use: a building that cannot be converted to another use without a large capital investment.”

According to the SBA, the following are considered single or special purpose properties:

  • Amusement parks
    • Auto service centers (with pits and in ground lifts)
    • Bowling alleys
    • Car washes
    • Cemeteries
    • Clubhouses
    • Cold storage facilities (where more than 50% of total square footage is equipped for refrigeration)
    • Dormitories
    • Farms and dairy facilities
    • Funeral homes with crematoriums
    • Gas stations
    • Golf courses
    • Hospitals, surgery centers, urgent care centers and other specialty medical facilities
    • Hotels and motels
    • Marinas
    • Mines
    • Museums
    • Nursing homes, including assisted living facilities
    • Oil wells
    • Quarries, including gravel pits
    • Railroads
    • Sanitary landfills
    • Sports arenas
    • Swimming pools
    • Tennis clubs
    • Theaters
    • Vineyards and wineries

SBA currently does not consider these property types “special” and therefore they may qualify for as little as 10% down:
• Art Galleries
• Breweries & Distilleries
• Child or Adult Day Care Facilities
• Event Centers
• Film, Radio and Recording Studios
• Laundromats and Drycleaners
• Parking lots
• Preschools and Montessori Schools
• Self-storage facilities
• Tow yards
• Wedding Chapels