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Long-term, fixed-rate financing for major fixed assets like commercial real estate, heavy equipment, and construction or renovation projects.
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.
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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)
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
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).
Submit business and personal tax returns, financial statements, business plan, property details, and job creation projections. Both the bank and CDC portions require documentation.
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.
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.
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.
Explore other loan products that might be a good fit for your needs.
The SBA's most common loan program offering up to $5 million for working capital, equipment, real estate, acquisitions, partner buyouts, and debt refinancing.
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.
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.
Apply online in minutes or call us to speak with a loan advisor about your SBA 504 options.
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.
These FAQs are generated with AI assistance and reviewed periodically. For personalized advice about your specific situation, please call us or apply online.