FAQ – Loan Amounts and Rates

What is the maximum loan amount available under the SBA 504 program?

The maximum SBA loan amount is $1,500,000 or 40% of the total project cost, or appraised value of the project – whichever is less. Any existing SBA loans would be included in the $1,500,000 maximum. If the applicant is involved in retooling or modernizing his/her facility to make the company more economically competitive, in a rural area, or located in a business revitalization district, the maximum SBA 504 loan amount may be increased to $2,000,000. In addition, manufacturing companies with the NAICS codes of 31, 32 and 33 can obtain a maximum SBA loan amount of $4,000,000.

What determines the SBA interest rate and when can I lock into the rate?

The interest rate for 10- and 20-year SBA 504 debentures is loosely based on a "spread" or premium over the 5- and 10-year U.S. Treasury rates, respectively. This spread will vary from offering to offering, reflecting current market conditions.

The interest rate is set approximately six weeks after the project is totally complete, a Certificate of Occupancy is issued, all construction funds have been fully advanced and lien waivers have been collected for the project.

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