SBA 504 Loans
Fixed-rate financing for major real estate and equipment purchases.
SBA 504 Loan Features
Up to $5.5 Million
Higher loan limits for major real estate and equipment investments through CDC partnership.
Fixed Below-Market Rates
The CDC portion (40%) offers fixed rates pegged to Treasury bonds, often below conventional rates.
As Little as 10% Down
Lower equity requirement than traditional commercial loans, preserving capital for operations.
20-25 Year Terms
Long amortization for real estate keeps monthly payments low and predictable.
Real Estate Focus
Ideal for purchasing land and buildings, construction, renovation, or modernization.
Job Creation Mandate
Designed to promote economic development and create or retain jobs in your community.
A 504 loan is split between a conventional lender (50%), a Certified Development Company or CDC (40%), and the borrower (10%). The CDC portion is guaranteed by the SBA.
Purchasing or constructing commercial real estate, purchasing heavy machinery or equipment, and renovating or modernizing existing facilities.
Yes. The CDC portion carries a fixed rate for the life of the loan. The conventional lender portion may be fixed or variable depending on the lender.
Generally, one job must be created or retained for every $75,000 borrowed (or $120,000 for manufacturing). Some public policy goals can satisfy this requirement.
Ready to Apply for SBA 504?
Lock in fixed-rate financing for your major investment.