SBA 504 Loans
Long-term, fixed-rate financing for major fixed assets like commercial real estate, heavy equipment, and construction or renovation projects.
Is This Loan Right for You?
An SBA 504 loan is right for you if you need long-term, fixed-rate financing to purchase commercial real estate, heavy equipment, or fund construction projects. The below-market fixed rate and low 10% down payment make it the most affordable way to acquire business property. Under SBA Standard Operating Procedure 50 10, the program uses a three-part structure: a bank first mortgage at 50%, a Certified Development Company second mortgage at 40% backed by the SBA, and your 10% equity injection. You will need a minimum 680 credit score, and your business must occupy at least 51% of an existing building or 60% of new construction. Terms of 10, 20, or 25 years are available with the CDC portion carrying a fixed rate typically 1 to 2% below conventional commercial rates. Compared to SBA 7(a) which offers more versatile fund usage, the 504 is purpose-built for major fixed-asset acquisitions at the lowest fixed rate. Choose SBA 504 when acquiring commercial property or equipment is your goal.
What Are the SBA 504 Requirements?
Min Credit Score
680+
Min Down Payment
10%
Max LTV
90%
Max DTI
N/A (business cash flow analysis used)
Loan Limits
No maximum; CDC portion typically up to $5 million ($5.5 million for manufacturing and energy projects) (per SBA Standard Operating Procedure 50 10)
PMI / MIP
CDC processing fee and ongoing servicing fee apply
Occupancy
Business use; must occupy at least 51% of existing building or 60% of new construction
Key Features
- Long-term fixed-rate financing
- Commercial real estate and heavy equipment
- Construction and renovation projects
- Lower down payment requirements than conventional commercial loans
- 10, 20, or 25-year terms available
How It Works
Pre-Qualification
We evaluate your business financials, the property or equipment you want to acquire, and your job creation plan to determine SBA 504 eligibility. We coordinate with a Certified Development Company (CDC).
Application & Documentation
Submit business and personal tax returns, financial statements, business plan, property details, and job creation projections. Both the bank and CDC portions require documentation.
Dual Underwriting & SBA Approval
The conventional lender underwrites the first mortgage (50%) and the CDC underwrites the SBA portion (40%). The SBA reviews and approves the CDC debenture. This dual process takes 45-60 days.
Closing & Funding
Complete closing on both the conventional first mortgage and the CDC/SBA second mortgage. The SBA 504 debenture is funded after the next available pool date.
Estimate Your Payment
Results
This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Rates, terms, and availability of programs are subject to change without notice.
What Are the Pros and Cons of SBA 504?
Advantages
- Below-market fixed interest rate on the SBA (CDC) portion for up to 25 years
- Only 10% down payment required (vs 20-30% for conventional commercial loans)
- Long-term fixed rate protects against interest rate increases
- Can finance up to 90% of total project cost
Considerations
- Must occupy at least 51% of existing property or 60% of new construction
- Longer and more complex process than conventional commercial loans
- Job creation or retention requirements must be met
Frequently Asked Questions
Getting a SBA 504 Loan in the San Gabriel Valley
NetCORE Lending™ is headquartered in Diamond Bar and has been helping borrowers across the San Gabriel Valley secure sba 504 financing since 2015. We serve homebuyers and homeowners in Pomona, Walnut, Rowland Heights, West Covina, Chino Hills, Covina, La Verne, Glendora, San Dimas, Hacienda Heights, and City of Industry — as well as borrowers throughout California.
As a local mortgage broker, we understand the San Gabriel Valley real estate market — from the higher-value properties in Chino Hills and Diamond Bar to the more affordable options in Pomona and West Covina. Our team provides bilingual service in English and Vietnamese and shops 100+ wholesale lenders to find you the lowest available rate on your sba 504 loan.
Call (714) 399-6361 to discuss sba 504 options with a local loan advisor, or get pre-qualified online in 2 minutes.
Also Consider
Explore other loan products that might be a good fit for your needs.
SBA 7(a)
The SBA's most common loan program offering up to $5 million for working capital, equipment, real estate, acquisitions, partner buyouts, and debt refinancing.
SBA Express
Faster SBA financing with loan amounts up to $500,000 and expedited turnaround. Available as term loans or revolving lines of credit for businesses needing quick access to capital.
SBA Microloan
Small loans up to $50,000 for startups and small businesses. Ideal for working capital, inventory, supplies, and equipment. Often paired with business training and technical assistance.
Ready to Get Started?
Apply online in minutes or call us to speak with a loan advisor about your SBA 504 options.
Official Sources
This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Rates, terms, and availability of programs are subject to change without notice.
NetCORE Lending™ helps connect you with SBA-approved lenders. The U.S. Small Business Administration (SBA) does not directly lend money to small businesses. SBA loans are provided by participating lenders with a government guarantee that reduces the lender's risk.
Reviewed by Joann Ton, Loan Officer (NMLS# 1461031) | Last updated: June 2026