The SBA 504 Program

What is the SBA 504 Loan Program?

The SBA 504 Loan Program assists small business owners in the purchase of commercial real estate or machinery/equipment. The SBA 504 Loan Program is a partnership program between a Certified Development Company (CDC) and a lender. Working with qualified lenders, Capital CDC provides up to 90% financing for commercial property purchases and new construction and, usually, does not require additional collateral.

Why is the SBA 504 Loan Right for You?

An SBA 504 Loan is a powerful tool to help your business grow. It offers:

Assets Which Can Be Financed

How is an SBA Grow (504) Project Structured? 

The typical SBA Grow (504) Loan structure is as follows: 50% lenders note, 40% SBA 504 note and 10% borrower injection.

Capital CDC 504 SBA Project Structure

If a project is a special purpose facility or start-up business, the SBA Grow (504) portion drops to 35% and the borrower is expected to contribute 15%.

If a project is a special purpose facility and a start-up business, the SBA Grow (504) portion drops to 30% and the borrower’s injection is 20%.