The SBA 504 Loan Program provides long-term, fixed rate, subordinate financing for acquisition and/or renovation of capital assets including land, buildings, and equipment. Virtually all types of for-profit businesses are eligible for this program.
504 Loans Include
- Debt Refinance with expansion
- Debt Refinance
- Construction
- Green loan
- Straight purchase
- Equipment
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Use of Funds
- Purchase commercial real estate
- Build or renovate commercial property
- Buy equipment, machinery and fixtures
- Refinance debt for commercial property and equipment
- Pay eligible soft costs and professional fees
Benefits
- Lower down payment
- Up to 90% financing
- Long-term, below-market fixed interest rates
- Refinance with potential 20% cash-out
- No balloon payments
Requirements
- Owner-occupied commercial real estate: At least 51% applicant occupancy (60% for new construction)
- For-profit business
- Under $15 million in tangible net worth
- Prior 2 years average after-tax net income under $5 million
- Able to meet the down-payment requirement
- Good credit history
Loan Structure
- 50% Bank, 40% SBA 504, 10% Borrower Injection
- Special Purpose*: 50% Bank, 35% SBA 504, 15% Borrower Injection
*Special Purpose: limited-market property with a unique physical design, special construction materials, or a layout that restricts its utility to the
Ready to Apply?
Download and complete the application forms.