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SBA 504
SBA 504 loans are part of the government insured program offering up to $5.5 million for fixed assets.
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Loan Amount
$25,000 to $5.5 million
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Time to Fund
30 to 90 days depending on structure
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Term Length
Up to 10 for fixed assets, up to 25 years for real estate
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What is an SBA 504 loan?
SBA loans are an excellent option for small businesses seeking reliable government-backed financing. SBA 504 loans focus on long-term, fixed-rate financing for major assets like commercial real estate or heavy equipment, offering up to $5.5 million for fixed asset projects that drive growth and job creation. These loans often come with lower rates and longer terms, making them a smart choice for businesses looking to grow.
What are 504 loans used for?
SBA 504 loans provide long-term, fixed-rate financing for major fixed assets, including commercial real estate, heavy equipment, and facility expansion. This program is designed to support small business growth by offering low-interest loans with favorable repayment terms. Businesses looking to invest in their physical infrastructure can benefit from the stability and affordability of SBA 504 loans.
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Minimum Requirements
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Credit Score
650
Monthly Revenue
No Minimum Revenue Requirement, Maximum Revenue limits depending on industry
Time in Business
No Minimum Revenue Requirement
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SBA 504 loans are ideal for businesses looking to purchase commercial real estate, heavy equipment, or other long-term fixed assets while keeping interest rates and down payments manageable.
Most SBA 504 loans require a 10% down payment, but startups and businesses in specialized industries may need to put down 15% to 20%.
Yes, but only if the debt was originally used to purchase fixed assets such as real estate or equipment and meets SBA refinancing guidelines.
The loan consists of two parts: a 50% bank loan with market rates and terms, and a 40% SBA-backed loan with a fixed low-interest rate and a repayment term of up to 25 years.
The process typically takes 45 to 90 days, depending on the complexity of the project and the efficiency of document submission.
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