The 504 program is designed to promote economic development by helping healthy, growing businesses finance the acquisition of long-term fixed assets, such as land, buildings, machinery and equipment, or the building, modernizing, renovating or restoration of facilities.

504 projects typically have a 90% LTV and a 50-40-10 structure.

10% for the majority of projects, 15% for new businesses (in operation less than 2 years) or special-purpose buildings, 20% for new businesses AND special-purpose buildings.

Proceeds can be used for one or many of the following:

  • Purchase of an existing building
  • Renovation of an existing building
  • Purchase of land and ground-up construction of a new building
  • Purchase of equipment with a life expectancy 10 years or more
  • Furniture and fixtures related to business operations
  • “Green” equipment such as solar panels and/or energy-efficient improvements such as windows, lighting, insulation – Learn more about the Green program.
  • Soft costs

There is no limit on the amount of the bank’s 1st mortgage, and therefore no maximum total project cost. The maximum for the SBA/CDC 2nd mortgage (typically 40% of the total project) is:

  • $5,000,000 for most projects
  • $5,500,000 for manufacturers or energy-saving projects under the Green Energy Program
  • Working capital
  • Inventory
  • Goodwill
  • Business stock
  • Vehicles
  • Franchise fees
  • Bank Fees

25-year, 20-year or 10-year fixed rate for real estate loans. 10-year fixed rate for equipment loans, with interest rates is based on the 10-year and 5-year treasuries respectively.

Your amortization schedule will provide accurate information regarding interest and fees as long as payments are paid in a timely manner. Also, you will receive a notice by January 31 itemizing interest and fees paid for the prior year.

Yes, but there is a pre-payment premium for the first 10 years of your loan. It declines each year. You can minimize the interest due by pre-paying your loan the month before your semi-annual date.

Yes, if you decide to refinance this first mortgage, Success Capital will subordinate your SBA loan to a no cash-out refinance of your first trust deed loan. Cash-out may be allowed if the proceeds are used for building improvements. This service action is called a subordination.

Contact Success Capital before the changes are made to be sure SBA will give approval to the changes needed. Any changes on the operating company, borrowing entity, obligors or guarantors needs to be approved by SBA. Contact our office at 209-521-9372.

Feel free to contact our office for any questions regarding your loan.

  • You may call our office at 209-521-9372
  • Email