SBA 504 Loan Program

The SBA 504 Loan Program is a government-backed small business loan designed to help businesses purchase commercial real estate, heavy equipment, or other fixed assets. It offers long-term, low-interest financing through a partnership between the Small Business Administration (SBA), a Certified Development Company (CDC), and a traditional lender.

This loan is ideal for business owners looking to expand, purchase property, or invest in major assets while keeping capital costs low.

Who Can Benefit from an SBA 504 Loan?

✅ Small business owners looking to purchase or refinance commercial real estate.
✅ Businesses needing to buy heavy machinery or long-term equipment.
✅ Companies wanting to construct, renovate, or expand their facilities.
✅ Business owners seeking lower down payments and long-term fixed rates.

Key Features of the SBA 504 Loan

✔ Loan Amounts Up to $5.5 Million – Can be used for large capital projects.
✔ Low, Fixed Interest Rates – Typically lower than conventional loans.
✔ Up to 90% Financing – Business owners contribute as little as 10% down.
✔ Long Repayment Terms – 10, 20, or 25 years for real estate and equipment.
✔ Funds Must Be Used for Fixed Assets – Cannot be used for working capital or inventory.
✔ Two-Part Loan Structure –

✔ Low down payment (10%) allows businesses to keep cash flow strong.
✔ Fixed interest rates protect against market fluctuations.
✔ Long repayment terms (up to 25 years) reduce monthly costs.
✔ Great for businesses needing major capital investment.

Typical Requirements for an SBA 504 Loan

📌 Business Must Be For-Profit – Operate in the U.S. and meet SBA small business size standards.
📌 Good Credit Score (Typically 680+) – Higher scores improve approval chances.
📌 Strong Business Financials – Business must demonstrate the ability to repay.
📌 Owner-Occupied Property – At least 51% of the purchased real estate must be for the business’s use.
📌 Down Payment of 10-15% – Lower than many conventional commercial loans.
📌 Job Creation Requirement – The business must create or retain jobs or meet public policy goals.

Eligible Uses for SBA 504 Loans

✅ Buying or Refinancing Commercial Real Estate – Offices, warehouses, retail spaces, etc.
✅ Purchasing Machinery & Equipment – Long-term assets with a lifespan of 10+ years.
✅ Renovating or Constructing Commercial Property – Expanding business locations.
✅ Refinancing Qualified Debt – If it originally financed fixed assets.

Not Allowed for:
❌ Working capital, 🚫 inventory, or day-to-day operations.
❌ Investing in rental properties or speculation.

🏢 Industries We Commonly Serve

We’ve helped businesses across a wide range of sectors secure SBA 504 financing, including:

• Assisted Living Facilities
• Automotive Repair Shops
• Business Acquisitions & Expansions
• Car Washes & Gas Stations
• Childcare & Daycare Centers
• Commercial & Industrial Properties
• Dental Labs & Medical Practices
• Dry Cleaners & Laundromats
• Franchises & Restaurants
• Funeral Homes
• Hotels, Motels, and RV Parks
• Light Manufacturing & Warehouses
• Lube Centers & Oil Change Shops
• Machinery & Equipment Purchases
• Office Condos & Professional Services (Doctors, Lawyers, CPAs, etc.)
• Optometry & Imaging Centers
• Self-Storage Facilities
• Transportation & Trucking Companies