FAQs - Loan Amounts & Rates

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

For typical projects or if the applicant is involved in retooling or modernizing the facility to make the company more economically competitive, in a rural area, or located in a business revitalization district , the maximum SBA loan amount is up to 40% of the total project costs with a maximum dollar limit of $5,000,000. In addition, manufacturing companies with the NAICS codes of 31, 32 and 33 or those projects which meet certain specific environmental or energy efficiency public policy goals can obtain a maximum SBA loan amount of $5,500,000.

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.