SBA 504 Loan
Designed specifically for purchasing major fixed assets like commercial real estate or heavy equipment with long-term, fixed-rate financing.
Overview
The SBA 504 Loan program provides long-term, fixed rate financing for major fixed assets that promote business growth and job creation.
504 loans are available through Certified Development Companies (CDCs), SBA's community-based partners who regulate nonprofits and promote economic development within their communities.
Key Features
High Maximums
Program limits allow up to $5.5 million; project structure, lender, and eligibility determine the amount offered.
Fixed Rates
The CDC portion is long-term fixed-rate financing; the bank portion and offered terms vary.
Down Payment Options
A 10% contribution is common in some structures, but the required equity varies by project and lender.
Long Terms
10-, 20-, and 25-year maturities are available under the program, depending on the project.
Asset Financing
Ideal for purchasing real estate or heavy machinery.
Structured Repayment
Repayment and amortization depend on the project, lender, CDC, and loan documents.
Common Use Cases
Commercial Real Estate
Purchase an existing building or land for your business to occupy.
Construction
Build a new facility or modernize existing facilities.
Heavy Equipment
Purchase long-term machinery and equipment with a useful life of at least 10 years.
Expansion
Improve land, streets, utilities, parking lots and landscaping.
Frequently Asked Questions
Loan Details
- Loan AmountUp to $5,500,000 (program and project dependent)
- Repayment Term10, 20, or 25 years (project dependent)
- Interest RateCDC portion fixed; offered rates vary
- Time to FundOften 45 - 90 days; varies by project
Common lender guidelines
These are common SBA/CDC screening considerations, not a complete or universal minimum checklist. The participating Certified Development Company and lender confirm current eligibility and underwriting requirements.
- SBA size standards and eligible business activity apply; confirm current rules
- Qualified management, a feasible business plan, good character, and ability to repay are reviewed
- Project should promote business growth and job creation or meet an eligible public policy goal
- For-profit U.S. business, subject to SBA rules and CDC/lender underwriting
Official SBA sources
How to Apply
- 1Submit 5-min form
- 2Review matches
- 3Provide documents
- 4Receive funds
Timing expectations
After a completed application, quotes are typically provided within 24–72 hours. After acceptance, funding may be same day or within 24 hours, subject to provider approval, required documents, and bank processing.
SBA loans may take up to 60 days. All timelines are estimates and vary by product, provider, application, and banking process.
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Working Capital
Fast, accessible capital to cover everyday business expenses. Short-term financing designed to keep your operations running smoothly.