Borrowers typically fund 10% of the project cost, which preserves working capital for business expansion. Start-up projects or specialized purpose facilities require more equity.

Up to $5 million for a typical project, or if the business is located in a rural area, if the owners belong to a minority category, or if the business need meets a public policy purpose. Manufacturing companies with specific NAICS codes can obtain up to $5.5 million in SBA funds, as can companies meeting certain environmental or energy efficiency goals.

Helps minimize cash flow crunch that companies face during an expansion mode.

Keep monthly debt service affordable and constant, plus peace of mind knowing payments will not increase in the future.

The bank lends 50% of the project cost as the first mortgage lender. The SBA 504 loan program funds 40% of the project cost in a second mortgage position, and the borrower provides 10% cash or land equity.

The low down payment makes SBA 504 financing possible even if conventional financing is not an option. 

SBA 504 loans are another way lenders can help their small business customers expand and grow.