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SBA 504 Loans

Financing designed for small business needs.

Capital CDC Borrower

J. Stoilis Design

Santa Fe, New Mexico

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Grow Your Business with Funding For

  1. Acquisition of Existing Building
  2. Construction
  3. Fixed Assets from Business Acquisition
  1. Purchase of Land
  2. Purchase Equipment
  3. Building Expansion or Renovation
  1. Professional Fees
  2. Debt Refinance
  3. Lender's Interim Points & Interest

Financing Structure

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

Chart description here
  • Lender (50%)
  • CDC / SBA 504 (40%)
  • Borrower Contribution (10%)

Current Rates

6.555%

25-year debentures 25-year debentures Tooltip

6.656%

20-year debentures 20-year debentures Tooltip

6.908%

10-year debentures 10-year debentures Tooltip

Benefits of the SBA 504 Loan

For Borrowers

  1. Finance up to 40% of the project
    at a long-term, fixed rate
  2. Lower equity contribution
    as little as 10% of project to preserve working capital
  3. Eligible soft costs may be rolled into the project financing
  4. Debt refinancing available
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For Lenders

  1. Strengthen lender loan portfolio
    with 1st lien position and low Loan-to-Value
  2. Preserve borrower's working capital
  3. Fixed interest rate helps lenders compete for more business
  4. Offers creative financing to differentiate your lending institution in the marketplace
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Positioning Businesses for Growth

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SBA 504 Success Story

Amazing Magnets

Round Rock, Texas

Why the SBA 504 Loan is Right for You

  1. Low down payment
    conserve working capital
  2. 10, 20, or 25-year terms
    brings debt service in line with cash flow generated by the asset
  1. Fixed interest rate
    rate locks-in at funding
  2. Improve collateral position
    to increase borrowing capacity at lower rates
  1. Refinancing
    potential refinancing of existing debt related to fixed assets

SBA 504 Loan Eligibility Requirements

  • Most for-profit, owner-occupied small businesses in the U.S.
  • Tangible Net worth less than $20 million
  • Net profit is no more than $6.5 million
    2-year average after tax (including affiliates)
  • Manufacturers
    With 500 or less employees (including affiliates)
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Capital CDC Borrower

Meanwhile Brewing

Austin, Texas

SBA 504 Loan Programs

SBA 504 Loan Programs Module Commercial Real Estate and Equipment Loan

Commercial Real Estate & Equipment Loan

Providing up to 90% financing for commercial property and equipment purchases.

  • For-profit, owner-occupied small businesses in U.S.
  • Tangible net worth less than $20 million
  • Net profit after tax (2-year average) of no more than $6.5 million (including affiliates)
Download the SBA 504 Guide
SBA 504 Loan Programs Module Refinancing

Refinancing

Co-Lender financing designed to refinance existing commercial real estate or equipment debt.

  • For-profit, owner-occupied small businesses in the U.S.
  • Businesses with at least two years of operations and whose debt is at least 6 months old (projects without expansion only).
  • Business must occupy at least 51% of its property at the time of application
Download the SBA 504 Refi Guide
SBA 504 Loan Programs Module Green Energy Program

Green Energy Program

Secure up to $5.5 million for projects that meet SBA's green energy standards and meet one of the following goals to qualify:

  • Reduce energy use by 10%
  • Renewable energy sources that generate at least 15% of the energy used
  • Increased use of sustainable designs
  • Most energy improvements & equipment can be rolled into the loan
Download the Green Energy Guide

Find Your Loan Officer Today!

Feel confident knowing we are the leading non-profit provider of small business financing. Our Loan Officers are experts and have been helping people fund their dreams since 1993.

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Frequently Asked Questions

Small Business Success Stories

Picoso's Mexican Kitchen Opens New Restaurant in Lubbock with SBA 504 Financing

AEND Industries Uses SBA 504 Loan to Relocate to Texas

Brewing Up Small Business Success

T-Top Manufacturing Expands Operations into Bridgeport, Texas

Nitro Swimming Makes Waves in the Austin Area With Second Location