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    SBA 504 Loans for Commerical Real Estate & Equipment

    The 504 Loan program offers small business financing for commercial real estate and equipment. This type of loan offers both immediate and long-term benefits, so you can focus on growing your business.

    Key Benefits

    • Up to 90% financing
    • Longer loan amortization
    • Fixed-rate interest rates and 
    • Savings that result in lower monthly payments and improved cash flow for small businesses. 

    Loan Structure

    Get up to 90% Financing with an SBA 504 Loan

    SBA 504 Loans are typically structured with SBA providing 40% of the total project costs, a participating lender covering up to 50% of the total project costs, and the borrower contributing 10% of the project costs. Under certain circumstances, a borrower may be required to contribute up to 20% of the total project costs.

    The use of proceeds from 504 loans must be used for fixed assets (and certain soft costs), including purchase, construction, or refinance of owner-occupied commercial real estate or equipment. 



    504 Loan Eligibility

    To be eligible for a 504 Loan, your business must be operated for profit and fall within the size standards set by the SBA. Under the 504 Program, a business qualifies if it has a tangible net worth not more than $15 million, and an average net income of $5 million or less after federal income taxes for the preceding two years prior to application. Loans cannot be made to businesses engaged in nonprofit, passive or speculative activities. For additional information on eligibility criteria and loan application requirements, small business and lenders are encouraged to contact a Certified Development Company in their area.

    Generally, the project assets being financed are used as collateral. Personal guarantees from owners of 20% or more may also be required.

    Interest Rates and Fees
    Interest rates on 504 Loans are correlated with the current market rate for 5-year and 10-year U.S. Treasury issues. Loan maturities of 10 and 20 years are available. Fees may be financed with the loan.

    For more information about SBA 504 loans, visit www.sba.gov