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Capital CDC Services

Loan Program

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

Find a Development 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
Going Green - Larger funding amount for projects that utilize sustainable design, reduce energy use by 10%, and/or produce renewable energy or renewable fuels

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
Refinancing - Small businesses can refinance existing debt related to fixed assets if they also borrow money to finance more real estate or equipment through an expansion project. The amount of debt being refinanced must be 50% or less of the total cost of expansion

How is an SBA 504 Project Structured?

Capital CDC provides up to 40% of the total project cost with an affordable, fully amortized, fixed-rate loan. The participating lender, in most cases, finances 50% of the cost. You, the borrower, typically put down as little as 10% of the total project cost.

Example Project
Source	Percent	Amount
Bank Loan	50%	$500,000
CDC/SBA	40%	$400,000
Business Owner	10% ³	$100,000
Total	100%	$1,000,000

+ The CDC/SBA portion of the loan amount (40%) is limited to a maximum of $1,500,000

+ The 504 Loan amount can be increased, however, to $2,000,000 when supporting economic development “public policy” goals; and to $2,000,000 when supporting green sustainable design “public policy” goals

+ The 504 Loan amount can be further increased to $4,000,000 for “small manufacturers” as defined by the SBA; and when supporting green initiative “public policy” goals where a business is either reducing their energy use by 10% and/or producing renewable energy or renewable fuels

¹ May include remodeling or expansion. ² Must occupy 80% within ten years and can lease 20% of project on a permanent basis. ³ Single purpose buildings and start-up businesses are subject to additional equity injection

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.