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SBA 504 Loan

Build your business and community with an SBA 504 loan and up to 90% financing

The SBA 504 loan program is ideal for larger, established businesses that need long-term financing for heavy machinery or the acquisition, construction, or improvement of real estate that is primarily owner occupied. The program features generous loan amounts and offers up to 90% financing.

Details
  • Fixed or variable rate term loan
  • Borrow up to $12MM
  • 10% down payment (15% for startups)
  • Requires 51% occupancy of existing building or 60% occupancy for new construction
SBA 504 Loan Terms
  • 10 years for major fixed asset purchase
  • 20 years for commercial real estate financing
Maximum Interest Rates*
  • Variable rates* may be indexed to (maximum with potential monthly changes)
    • One month LIBOR + 3.00%
    • Wall Street Journal Prime Rate + 2.75% (for terms greater than 7 years)
SBA Guaranty Fees*
  • Fees total approximately 3 percent of the debenture and may be financed with the loan.

Speak to a business banking professional about whether an SBA Express loan is right for your business.

Other SBA Loan Types

SBA Express Loan

  • For starting, expanding, improving, refinancing, or acquiring a business
  • Term loan or line of credit for up to $350,000
  • Easier application process and accelerated approval

SBA 7(a)

  • For starting, expanding, improving, refinancing, or acquiring a business
  • Fixed or variable rate term loan for up to $5MM
  • Most flexible SBA loan program

Speak to a business banking professional about whether an SBA Express loan is right for your business.

Related Features

 

 

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1-800-4BUSINESS

(1-800-428-7463)



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*The interest rate on the SBA 504 loan is set when the SBA sells the bond (debenture) to fund the loan, and the interest rate is then fixed for the duration of the term. The small business owner’s monthly payment includes program fees and a loan loss subsidy fee, which are financed as part of the loan. SBA 504 debentures are fully amortized securities and have no balloon payments. To compare interest rates, see the U.S. Treasury bond rates. SBA fee waivers and other fees may apply given the specific details of the transaction(s), borrowers status, use of funds, loan structure, collateral, etc.