SBA 504 Loans
Fixed-rate, long-term financing for owner-occupied commercial real estate and major fixed assets — as low as 10% down.
Overview
The SBA 504 loan program is specifically designed for major fixed-asset purchases — primarily owner-occupied commercial real estate and large equipment. The three-party structure (bank 50%, CDC 40%, borrower 10%) provides long-term fixed rates on the CDC portion with up to 25-year terms. SBA 504 is commonly used to purchase or expand the building a business operates from, subject to SBA program guidelines and lender approval.
Who Is This For?
- Business owners purchasing their own building
- Companies expanding into larger facilities
- Manufacturers purchasing major equipment ($100K+)
- Businesses refinancing existing owner-occupied commercial mortgages
The Buying Process
What to expect from pre-approval to closing.
Eligibility Check
Confirm the project qualifies (owner-occupied, for-profit, within SBA size standards).
Application
Submit financials, business plan, and project details to CDC and bank.
SBA Approval
CDC and SBA review — typically 60–90 days.
Close
Two closings (bank and CDC) coordinated together.
Frequently Asked Questions
A Certified Development Company is a non-profit that partners with the SBA to provide the 40% second-lien portion of a 504 loan. There are CDCs across the country that serve different regions.