SBA Loans

 SBA loan -504 Loan – Owner Occupied Commercial Real Estate Loans

SBA 504 loans Minimum Requirements

Good credit score (over 680)

10% down payment

Meet job creation or public policy goals Real estate

Must be at least 51% owner occupied


Current SBA 504 Interest Rates


 3.78 - 5.39%


SBA 504 Loan Amount


Up to $20 million

SBA 504 Loan Terms


10 or 20 years


What is a SBA 504 Loan Used For?

According to SBA guidelines, CDC / SBA 504 loan uses include:
• Buy real estate (land and buildings)
• Real Estate Improvements (like upgrading roads, utilities, etc.)
• “Construction” of new facilities
• Modernization of existing facilities
• Conversion of existing facilities
• Long lifespan equipment and equipment
The important takeaway is how much more restrictive a CDC / SBA 504 loan is compared to an SBA 7(a) loan. You cannot use the proceeds of a 504 loan for working capital, debt refinance, non-owner occupied / investment real estate, etc.

What are the SBA 504 Loan Qualifications?

To qualify for a CDC / SBA 504 loan, your business must:
• Credit score above 660
• Down payment of 10% of the project cost
• Meet the job creation or public policy goals (explained below)
• Have a tangible net worth less than $15 million and an average net income less than $5 million after taxes for the preceding two years
• Not be engaged in speculation or investment in rental real estate
• Not have funds available from other sources
• Have the ability to repay the loan on time from the projected operating cash flow of the business

In addition to the above, if you are using the loan to purchase an existing building it must be at least 51% owner occupied. For example, you cannot use a 504 loan to purchase a hotel that you will fully rent out to tenants. But you can use a 504 loan to purchase retail space that you will use most of and rent out a small part of to another tenant. New construction has even higher owner occupancy requirements.
If you’re in the market for commercial real estate and will occupy at least 51% of the space, you may be a good candidate for an SBA 504 loan.

SBA 504 Loans

 SBA 504 loans combine a loan from a nonprofit CDC with a loan from a bank to create a long term, low interest rate loan from $250,000 to $20,000,000 for the purchase of owner occupied commercial real estate and heavy equipment
  i. LTV’s up to 90%
    1. Real estate and equipment loans
    2. Hotel / Motel
    3. Restaurants
    4. Apartments
    5. Office buildings
    6. Commercial buildings
    7. Gas Stations
    8. C Stores
    9. Startup business
    10. Self-Storage Facilities
    11. Assisted living
    12. Many others

How It Works- Easy

1. Pre-qualify for an SBA 504 Commercial Real Estate Loan
Pre-qualify- Simply provide basic information online and we’ll automatically tell you if you prequalify for an SBA commercial real estate loan from $350,000 to $5 million.
2. Provide Financial Information
Provide financial information about your business and its owners. Your dedicated Loan Manager can help with any questions.
3. Accept Your Letter of Intent
You will receive a non-binding letter of intent (LOI) outlining details of the SBA commercial real estate loan so you can negotiate terms with the property seller or your existing lender.
4. Conduct Property Valuation (Appraisal)
During the SBA commercial real estate application process, the property you’re interested in will be valued. Your dedicated Loan Manager helps facilitate this step.
5. Get Funded
Upload requested documents to complete your application. We'll work with you through the loan closing process. Funds can be wired for closing in as fast as 30 days after credit approval.


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Saturday12:00PM - 5:00PM


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