SBA 504 Loan Program

Category: finance

A long-term, fixed-rate financing program backed by the SBA specifically for major fixed asset acquisitions like real estate.

Structured as a partnership between a commercial bank (50%), a Certified Development Company (40%), and the borrower (10%). It is explicitly designed for community economic development and requires the borrower to meet specific job creation or retention metrics.

Common Examples

• We utilized an SBA 504 loan to construct our new centralized distribution warehouse, locking in a low fixed rate for twenty-five years.
• SBA 504 loans cannot be used for operational working capital, inventory purchases, or generic corporate debt refinancing strategies.