Capital CDC: Serving all of Texas and New Mexico

Capital CDC Services

Loan Program

Find out how the SBA 504 Loan Program assists small business owners.

Find a Loan Officer

Find a business development officer that's on the ground where you are.

Interest Rates

See current and historical interest rates for SBA 504 loans.

Resources for Borrowers

Tools and testimonials to help borrowers understand the power of SBA 504.

For Lenders & Brokers

Capital CDC can help connect you with qualified and successful businesses.

Forms & FAQ

SBA 504 Loans are easy to apply for. Here are the forms to help you get started.

Contact an office near you to find out more about the SBA 504 Loan 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:

Low Down Payment - Conserve operating capital
Competitive, Fixed-Interest Rate - No future interest rate fluctuations
Long-Term - Brings debt service in line with cash flow generated by the asset
Conserve Working Capital - As low as 10% down
Offset Interest Rate Risk - Of portion of project tied to a fixed rate
10-20 Year Terms - Longer terms for lower payments
Improve Collateral Position - To increase borrowing capacity at lower rates
Refinancing - In certain circumstances, refinancing of existing debt related to fixed assets

Assets Which Can Be Financed

Existing Buildings - Business must occupy at least 51% of the project ¹
New Construction - Business must occupy at least 60% of project upon occupancy ²
Machinery / Equipment - Must have a useful life of at least ten years

How is an SBA 504 Project Structured?

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

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

Eligible Companies

Existing Businesses that meet SBA’s definition of a small business are eligible to apply for 504 loans. Start-up ventures with financially strong and/or experienced owners are also eligible.