Helping small businesses expand their capabilities with larger purchases backed by SBA 504 loans
* 10-20% down payment and collateral is generally required for SBA-guaranteed financing.
We understand the challenges that small businesses face when they want to grow. When it comes time to purchase real estate or high-dollar equipment, finding the right loan with the right terms can be difficult.
We work with SBA's Preferred Lending Partners to fund your large business purchases through SBA 504 loans. We make the application process easy for you so you can more easily obtain the funds you need to grow.
SBA 504 loans are also known as CDC/504 loans. These small business loans are offered by Certified Development Companies and are backed by the federal government.
SBA 504 loans offer borrowers long-term financing up to 25 years for major business purchases such as real estate or equipment. The maximum loan amount for most 504 loans is $5 million. Unlike other SBA lending programs, 504 loans cannot be used for working capital. Closing times are also longer than other SBA loan programs, taking up to a couple of months for approval.
SBA 504 loans are typically easier to qualify for than traditional lending programs. In addition to meeting general SBA loan eligibility requirements, borrowers must meet specific criteria for the 504 program, including:
Must be a for-profit business operating in the US
Show a net worth of less than $15 million
Demonstrate an average net income of less than $5 million for the two years prior to the application.
In addition to these requirements, the SBA general requirements include:
Meeting the SBA definition of a small business
No delinquencies on any government loans, including federal student loans
Strong personal credit history
SBA 504 loans have more stringent qualification criteria than other SBA lending programs, but they still have many benefits that make them an attractive alternative to traditional loans.
SBA loans offer lower interest rates and fees than many traditional lenders.
SBA 504 loans are easier to access than traditional loan programs and are built for businesses that may not qualify for conventional lending.
Repayment options ranging from 15 to 25 years make SBA 504 loans more feasible for small business owners.
SBA 504 loans offer smaller down payment options, with most requiring 10% down, and in special cases, up to 20%.
SBA 504 loans are used to create jobs and promote business growth through real estate, supply, and equipment purchases.
SBA loan recipients enjoy access to the organization's vast network of resources, including mentorship and training opportunities.