SBA 504 Loan Program
(Commercial Real Estate & Capital Equipment)


To provide long-term below market rate financing to businesses that will retain jobs and create new employment opportunities.


  • The Purchase of Existing Buildings
  • Land Acquisition and Ground Up Construction (includes soft cost development fees)
  • Expansion of an Existing Building
  • Financing Building Improvements
  • Refinancing of Buildings and Equipment
  • The Purchase of Equipment


  1. Loan Amount
    • No Project Maximum. SBA portion $25,000 to $5,000,000 ($5.5 million for energy savings and small manufacturers)
  2. Participation Levels (General)
    • Private lender: 50% of total project cost
    • SBAC: Up to 40% of total project cost ($1.5/$4 million maximum)
    • Small Business Concern: 10% of the total project cost (maximum of 20% as regulated by the SBAC)
  3. Collateral
    • Private lender: Senior lien on project property as determined by private lender
    • SBAC: Subordinate lien on project property and/or pledge of personal assets, personal guaranty of owner(s) as determined by the SBAC.
  4. Term
    • Private lender: 10 or 25 years as determined by private lender
    • SBAC: 10 or 20 years, as determined by the SBAC
  5. Interest Rate
    • Private lender: Variable or fixed, as determined by the private lender.
    • SBAC: Interest rates on 504 loans are generally at an increment above the 10 year U.S. Treasury issues. All SBA 504 rates are fixed for the entire term.
  6. Fees to Borrower
    • SBA/SBAC: Approximately 2.2% of the net SBA debenture amount. A $1,000 packaging fee is collected prior to processing the 504 request.
  7. Minimum Equity Investment
    • Minimum 10% – 20% equity in the project is required as regulated by the SBAC. Most applicants qualify for 10% equity requirement. Start up businesses require an additional 5%, and single purpose real estate projects require and additional 5% for a maximum down payment requirement of 20%.


Standard SBAC criteria mandate one new job or job retained per $65,000 of total 504 loan amount (i.e., $650,000 = 10 jobs required). Job creation criteria can be waived or modified in some cases, such as if the project involves exporting, is located in a revitalization district, rural area, is woman, veteran or minority owned, or meets any other national priority. Small manufacturing is calculated at $100,000 per job.


All rates and terms subject to change without notice.