SBA 504 financing
SBA 504 Loans
Long-term, fixed-rate financing for owner-occupied commercial real estate, construction, equipment, and eligible refinancing.
Program overview
SBA 504 Loans
The SBA 504 loan program provides long-term, fixed-rate financing to help owner-occupied businesses purchase, construct, or improve major fixed assets. Our team structures the bank, CDC and equity components and guides you from initial review through closing and debenture funding.
What SBA 504 Can Finance
SBA 504 Effective Rates — October 2026
25-Year Term
6.97%
Fixed for the full term
20-Year Term
6.97%
Fixed for the full term
10-Year Term
6.59%
Fixed for the full term
Manufacturers, food supply chain & rural businesses (SBA fees waived): 6.74% on 20- and 25-year terms
Fee-waived rates apply to SBA 504 loans approved October 1, 2026 through September 30, 2027 for manufacturers (NAICS 31–33), eligible food supply chain businesses and businesses in rural areas, which pay no SBA upfront guaranty fee or annual service fee. Effective rates include ongoing fees to the CDC, SBA, and Central Servicing Agent and are based on published SBA 504 debenture pricing. Rates apply to the CDC/SBA portion of the project (up to 40%); the bank's first mortgage is priced separately. Your rate is set when your debenture is sold, typically monthly, and may differ from the rates shown. Not a commitment to lend.
Typical SBA 504 Structure
Three sources combine to finance the project.
Bank First MortgageTypically 50% of total project costs, with a first lien position.
SBA/CDC Second MortgageUp to 40% of total project costs, provided by a Certified Development Company (CDC).
Borrower EquityTypically 10% of total project costs; often 15% for special-purpose properties or startups.
How We Coordinate With the CDC
Structure the financing
We structure the bank, CDC and equity components for the project.
Coordinate with the bank
We work closely with the participating first-mortgage lender.
Work directly with the CDC
We coordinate with the CDC throughout underwriting and closing.
Prepare documentation
We prepare documentation for both the bank underwriting process and CDC review.
Stay involved to the end
We remain involved through approval, closing and debenture funding.
Specialized industry financing
Deeper expertise in select industries.
Beyond general SBA 504 eligibility, these three industries have their own financing considerations — brand and franchise requirements, licensing, equipment, and property types that a generalist lender often misses.
Hospitality Lending
Hotel and motel acquisitions, ground-up construction, PIP renovations, and franchise/flag conversions.
Learn more →Assisted Living Lending
Facility acquisition, construction and expansion, and equipment financing for senior care operators.
Learn more →Gas Station & Car Wash Lending
Fuel and convenience store acquisitions, car wash construction and equipment, and tank system upgrades.
Learn more →Energy & sustainability
Finance beyond the standard cap with an SBA 504 Green loan.
Projects that reduce energy use or generate renewable energy may qualify for financing beyond the SBA's standard per-borrower limit under the SBA Green program — up to $5.5 million per project, with no aggregate cap on the number of Green-qualified 504 projects a borrower can pursue.
Energy Reduction Goal
Demonstrate at least a 10% reduction in energy consumption through a retrofit of an existing facility or a new facility replacing an old one — typically achieved through upgrades to lighting, HVAC, insulation, or the building envelope.
Renewable Energy Goal
Install a renewable energy system — solar, wind, geothermal, or similar — that generates at least 15% of the property's total energy consumption.
Loan cap increased to $5.5 million per project, above the standard limit
No aggregate cap on the number of qualifying Green project loans
Same long-term, fixed-rate structure as standard SBA 504 financing
Lower ongoing energy costs improve long-term cash flow
Green program eligibility, current loan limits, and qualification criteria are set by the SBA and subject to change. Contact our team to confirm current guidelines for your project.
Our role
Banker-led structuring from initial review through closing.
Experienced bankers
We understand lender requirements and structure requests that highlight the strengths of your transaction.
Strong presentation
Clear financials, analysis and narrative that support approval and confident underwriting.
Lender relationships
We maintain active relationships with banks, credit unions, CDCs and SBA-approved lenders.
From start to close
We stay involved through diligence, conditions and closing to help keep your deal on track.