# Can land you already own count toward a 504 down payment?

**Short answer:** Yes, if the land is part of the project. Land bought less than 2 years before the application counts at cost. Land held 2 years or more counts at appraised fair market value (13 CFR § 120.911; SOP 50 10 8.1, Sec. C, Ch. 1, Para. C.1).

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Last checked: 2026-11-09

Yes. Your contribution can be land that is part of the project, including buildings and site improvements you already acquired (13 CFR § 120.911). The SOP also counts your equity in land and buildings you own, if they are part of the project (SOP 50 10 8.1, Sec. C, Ch. 1, Para. E.1.e; Para. E begins p. 242).

## How the land is valued

- Bought less than 2 years before the application: valued at cost.
- Held 2 years or more: valued at fair market value, set by an independent appraisal.

Source: Sec. C, Ch. 1, Para. C.1 (p. 226).

## The appraisal trigger

If you contribute equity in land owned 2 years or more, an appraisal is required even when the property is worth $500,000 or less. It must go to SBA with the application (Para. E.2.b).

## How much you must contribute

You must contribute at least 10% of the financing, 15% for a new business or limited or special purpose property, and 20% for both. Source: Para. B (p. 221). The percentage is of project cost, excluding administrative costs (13 CFR § 120.910).

## Equipment and refinances

Your equity in equipment can count in a 504 refinance if the debt originally bought that specific equipment. Equity in land or a building being refinanced can count as well (Para. E.1.e; Para. C.11).

## Other sources

The contribution can also be cash, or property SBA accepts that you bought with cash (13 CFR § 120.910). It can be borrowed if it is subordinate to the third party loan and the debenture (Para. E.1.e; 13 CFR § 120.912).

## Sources

- [SOP 50 10 8.1, Sec. C, Ch. 1, Para. B (p. 221)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. C, Ch. 1, Para. C.1 (p. 226)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. C, Ch. 1, Para. C.11 (Para. C begins p. 226)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. C, Ch. 1, Paras. E.1.e, E.2.b (Para. E begins p. 242)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.910](https://www.ecfr.gov/current/title-13/section-120.910)
- [13 CFR § 120.911](https://www.ecfr.gov/current/title-13/section-120.911)
- [13 CFR § 120.912](https://www.ecfr.gov/current/title-13/section-120.912)