SBA 504 loans offer owner-operators the ability to finance commercial real estate with as little as 10% down, fixed rates, and 20–25 year terms. RefiLoop connects you with SBA lenders competing for your deal.
What Is an SBA 504 Loan?
An SBA 504 loan is a government-backed commercial real estate financing program for owner-occupied properties. The structure involves: a Certified Development Company (CDC) provides 40% via an SBA-guaranteed debenture; a conventional lender provides 50%; and the borrower contributes a minimum 10% down payment.
SBA 504 Loan Key Terms
- Down payment: As low as 10% (15% for special purpose, 20% for startups)
- SBA portion: Fixed rate for 20 or 25 years
- Loan size: SBA debenture up to $5M ($5.5M for manufacturers/green energy)
- Owner-occupancy: Borrower must occupy at least 51% of an existing building
Who Qualifies for SBA 504?
For-profit businesses with a tangible net worth under $20M and average net income under $6.5M after taxes for the prior two years. The business must be owner-operated and the real estate must be primarily owner-occupied.
Property Types Eligible for SBA 504
Office buildings, retail/storefront, warehouse/industrial, medical/dental, restaurants, hotels (limited service), car washes, self-storage, manufacturing facilities, and other owner-occupied commercial properties.
Get Competing SBA 504 Offers Now
Submit your deal and receive 3–5 competing term sheets within 48 hours. No cost. No exclusivity.