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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 rates and conditions

Commercial banks will give you loans with the terms they set with Third Party Lenders of SBA 504 loan program

CDC/SBA will fund at a low (lower than bank) and fixed rate for the entire duration of the loan, up to 25 years

This rate is typically about half the down payment of what the bank requires for conventional loans and for the SBA 7(a) program

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)


Existing Debts

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

  • Eligible green energy project* 

These two project could raise the debenture up to $5.5MM.


When a green energy project is involved,

a maximum of three loans can be generated for the CDC/SBA loan amount of $16.5MM


Project size:
We do NOT have a maximum project size as long as the small business owners have the ability to put a down payment


Check to see if your business qualifies as an Eligible Small Manufacturer with

'NAICS Code in Sectors 31, 32, and 33'

*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


  • Must be an operating 'for-profit' business

  • Must be a legal entity:
    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
    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 to process?

The processing takes approximately 45 days until closing.


*Keep in mind that the processing time varies depending on your document follow up speed.*

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