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SBA 504 Loans

SBA 504 Loans

Long-term, fixed-rate financing for the building your business operates from and the major equipment it runs on. Put as little as 10% down and keep your cash in the business.

Down payment10%As little as
Term20 yrsUp to, no balloon
RateFixedLong-term, on the SBA portion
Project size$5M+Larger projects funded
Eligible uses

Built for owner-occupied real estate

SBA 504 finances fixed assets your business will use, not investment property.

Buy a building

Purchase an existing building for your business.

Ground-up construction

Build a new facility from the ground up.

Buy land

Purchase land for a future business location.

Renovate and expand

Upgrade, renovate or expand an existing building.

Long-life equipment

Major machinery and equipment with a useful life of 10 years or more.

Refinance

Refinance conventional debt on owner-occupied property.

Program terms

SBA 504 loan terms

Terms available through our SBA lending partner. Final terms depend on the project and your business.

Project size
Small projects through projects of $5,000,000+
Down payment
As little as 10% (up to 90% financing); higher for startups and special-purpose properties
Term
Up to 20 years, fully amortizing, no balloon payment
Rate
Long-term fixed rate on the SBA portion
Structure
A bank first loan, an SBA-backed second loan through a Certified Development Company, and your equity
Occupancy
Your business occupies at least 51% of an existing building, or 60% of a new one
Eligible assets
Land, buildings, ground-up construction, renovations and equipment with a 10+ year life
Industries
Hundreds eligible, including car washes, assisted living, restaurants, gas stations, childcare, hotels, self-storage and commercial solar
How it works

Two loans, one project

Share the project

Send the property or equipment details, the purchase price or budget, and your business financials.

Structure the financing

The bank funds the first loan and the SBA portion is arranged through a Certified Development Company.

Close and occupy

Close on the property, move in, and lock in a long fixed payment on the SBA portion.

What you'll need

Documents checklist

  • Business tax returns for the last 3 years
  • Personal tax returns for each 20%+ owner
  • Year-to-date profit and loss and balance sheet
  • Personal financial statement for each owner
  • Purchase contract, construction budget or equipment quote
  • Business debt schedule
  • Projections for new or expanding businesses
Example

How a 504 project is funded

A typical 504 splits the project between a bank, the SBA and you.

50% bank · 40% SBA · 10% you
Building purchase$3,000,000 Bank first loan (50%)$1,500,000 SBA 504 loan (40%)$1,200,000 Your down payment (10%)$300,000

Illustration only. Startups and special-purpose properties typically require more equity. Fees and closing costs are additional.

Common questions

SBA 504 FAQ

Should I use SBA 504 or SBA 7(a)?

Use 504 when the project is mainly real estate or long-life equipment and you want a long fixed rate. Use SBA 7(a) when you also need working capital, are buying a business, or want one loan for several uses.

Can I lease part of the building to tenants?

Yes, as long as your business occupies at least 51% of an existing building or 60% of a new one.

Do I need more than 10% down?

Often 15% for a new business or a special-purpose property such as a hotel or car wash, and 20% when both apply.

What if the building is an investment property?

SBA 504 is for owner-occupied property only. For investment property, see long-term financing.

Is my business in a rural area?

Rural businesses can also look at USDA B&I loans, which run up to 30 years.

Ready to own your building?

Tell us about the property. We'll structure the 504 for you.

Get Started

Terms shown are available through Capital Lending Group's SBA lending partner as of October 2026 and change without notice. SBA 504 loans are subject to SBA and Certified Development Company eligibility rules, lender credit approval and fees. Capital Lending Group, LLC is a loan broker, not the lender, and is not affiliated with the U.S. Small Business Administration.