Fixed Rate
SBA 504 Loans — Fixed-Rate Commercial Real Estate Financing
Government-backed fixed-rate financing up to $5.5M for commercial real estate and heavy equipment. Only 10% down with terms up to 25 years.
Today's fixed rate:from 7%
Up to $5.5 Million
Maximum project amount
Up to 25 Years
Fixed rate terms
10% Down
Low equity injection
SBA 504 Loan Features
Up to $5.5 million in financing
Fixed interest rates for up to 25 years
Only 10% down payment required
90% financing available
SBA guarantees 40% of the loan
Bank provides 50% conventional financing
Borrower contributes 10% equity
No prepayment penalties
Eligible Uses
Real estate acquisition
New construction
Renovation and improvements
Long-term machinery and equipment
Owner-occupied commercial properties
Manufacturing facilities
Warehouses and distribution centers
Office buildings
How SBA 504 Financing Works
SBA 504 loans use a unique three-part financing structure that provides favorable terms and low down payments.
50%
Bank Loan
Conventional bank loan with competitive market rates
40%
SBA Debenture
Fixed-rate debenture with below-market rates
10%
Down Payment
Low equity injection makes real estate accessible
Eligible Property Types
SBA 504 loans can be used for a wide variety of commercial real estate properties.
Office Buildings
Retail Centers
Warehouses
Manufacturing Facilities
Mixed-Use Properties
Hotels & Motels
Gas Stations
Car Washes
SBA 504 Qualification Requirements
Understanding the requirements helps ensure your project qualifies for SBA 504 financing.
Business Size
Must meet SBA size standards and have a tangible net worth under $15 million
Owner Occupancy
Must occupy at least 51% of the property for existing buildings
Job Creation
Must create or retain 1 job per $75,000 of SBA financing
Equity Injection
10% equity required from business owner
SBA 504 Application Process
Our experienced team guides you through every step of the SBA 504 process.
01
Pre-qualification
Initial review of your project and qualifications
02
Documentation
Gather required business and project documentation
03
SBA & Bank Approval
Simultaneous review by SBA and bank partner
04
Closing & Funding
Close both loans and receive project funding
SBA 504 vs. SBA 7(a)
Both are SBA programs, but they're built for different goals. SBA 504 loans are purpose-built for major fixed assets through a Certified Development Company (CDC), while SBA 7(a) loans are flexible, general-purpose financing.
| Feature | SBA 504 | SBA 7(a) |
|---|---|---|
| Best for | Owner-occupied real estate & heavy equipment | Working capital, acquisition, general use |
| Structure | 50% bank / 40% CDC (SBA) / 10% borrower | Single loan, up to 85% SBA-guaranteed |
| SBA portion max | $5M ($5.5M for manufacturing/energy) | Up to $5 million |
| Rate | Long-term fixed (CDC portion) | Fixed or variable |
| Down payment | As little as 10% | Typically 10%+ |
Explore the SBA 7(a) program, or compare all SBA loan options.
Explore Related Financing Options
Compare financing options to find the best fit for your business needs
Up to $5M
SBA 7(a) Loans
The most flexible SBA program with up to $5M for working capital, equipment, and real estate.
Learn more$500K–$50M+
Commercial Real Estate Loans
Financing for office buildings, retail centers, industrial properties, and mixed-use developments.
Learn more$500K–$50M+
Construction Loans
Short-term financing for ground-up construction and major commercial renovations.
Learn more$500K–$25M
Conventional Commercial Loans
Standard bank financing for stabilized commercial properties with proven cash flow.
Learn moreReady to Finance Your Commercial Real Estate?
Take advantage of SBA 504's fixed rates and low down payment to acquire your commercial property.
FAQ
Frequently Asked Questions
The SBA 504 loan program provides long-term, fixed-rate financing for major assets like commercial real estate and equipment. The typical structure involves a 50% bank loan, 40% SBA-backed CDC loan, and only 10% borrower down payment.
SBA 504 loans offer up to $5.5 million in financing, with the SBA portion (CDC loan) up to $5 million for standard projects and $5.5 million for manufacturing or energy projects.
SBA 504 loans are specifically for purchasing or renovating owner-occupied commercial real estate, buying long-term machinery and equipment, and constructing new facilities. They cannot be used for working capital or inventory.
SBA 504 loans offer fixed interest rates for up to 25 years, only 10% down payment, below-market rates, longer terms, and 90% financing. This makes them ideal for businesses looking to purchase or expand commercial property.
To qualify for an SBA 504 loan your business must operate for profit, meet SBA size standards (tangible net worth under $15 million and average net income under $5 million), occupy at least 51% of the property, and create or retain one job per $75,000 of SBA financing (or meet a public-policy goal). A personal credit score around 680+ and a 10% equity injection are typically expected.
Most SBA 504 loans fund in roughly 45 to 90 days because the project is underwritten by both a bank and a Certified Development Company (CDC) before SBA authorization. Having your business tax returns, financial statements, and project details ready up front is the best way to shorten the timeline.
Yes. The SBA 504 refinance program lets eligible businesses refinance qualifying owner-occupied commercial real estate and other fixed-asset debt, often keeping the same low-down-payment, long-term fixed-rate structure — and in some cases borrowing against built-up equity for eligible business expenses.
For purchasing owner-occupied commercial real estate, the SBA 504 loan is usually the better fit — it offers long-term fixed rates and as little as 10% down through its 50% bank / 40% CDC / 10% borrower structure. The SBA 7(a) loan is more flexible when you need to blend real estate with working capital or a business acquisition into one loan.
Still have questions? Our loan experts are here to help.