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SBA 504 loan program is for small business owners who want to replace the rent payment to their equity by purchasing owner-occupied commercial real estate. You can expect a below-market fixed rate, 25 years long term, and minimum down payment as low as 10%. Minimize your down payment with the SBA 504 loan and reserve fund for your working capital!

How It Works?

SBA 504 loan provides up to 90% financing to small business owners with the best rate and condition ever. The basic structure of the loan program is the below chart. In the general case, 90% financing consists of 50% of Third Party Lender (TPL) and 40% of SBA/CDC.


What Can I Use It For?

  • Land acquisition and improvements

  • Construction of new facilities

  • Purchase of existing or build-to-suit facilities

  • Renovation of existing facilities

  • Equipment and machinery (the minimum useful life of 10 years required) purchases

  • Refinancing existing debts

What Can Be The Maximum Project Amount?

The maximum debenture that the CDC/SBA can fund as 40% of the project cost is $5MM in normal cases. Eligible small manufacturers (NAICS Code in Sectors 31, 32, and 33) and eligible green energy project (Projects for the reduction of existing energy consumption by at least 10% OR Generates more than 15% of the energy used at project facility) can raise the debenture up to $5.5MM. When green energy project is involved, a maximum of three loans can be generated for the CDC/SBA loan amount of $16.5MM

However, in terms of project size, we do NOT have a maximum project size as long as the small business owners have the ability to put a more down payment.


  • Must be an operating for-profit business

  • Must be a legal entity such as a corporation, partnership, sole proprietor, LLC, etc.

  • Must use the financing for a project located in the U.S.

  • Must have a tangible net worth of less than $15 million and profits after tax of less than $5 million for the previous two years

  • 51% owner occupancy for existing building purchases, 60% owner occupancy for new construction

How Long Does It Take?

The processing approximately takes 45 days until closing. Keep in mind that the processing can be slower or faster depending on your document follow up speed. 

Third Party Lenders

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