SBA 504 Loan Structure

504 loans for existing businesses are typically financed 50% by the participating commercial lender, 40% by the CDC, and 10% by the business borrower. For example, a $2,200,000 real estate project for an existing business might be structured as follows.

  Commercial Lender Wyoming Capital Access Business Borrower
Loan Amount  $1,100,000 $880,000  $220,000
Percent of Project  50%  40%  10%*
Term  Min 10 Years  20 Years  Equity
Interest Rate  Market Rate  Fixed Rate   
Collateral  1st Mortgage  2nd Mortgage   

*Start-up business OR a Special Purpose building requires 15% borrower equity
*Start-up business AND a Special Purpose building requires 20% borrower equity

An SBA 504 Loan is a powerful business financing tool that enables successful businesses to grow:

  • 90% financing preserves working capital for business expansion
  • The borrower chooses the 1st Mortgage lender based on their terms and interest rates
  • SBA loan fees are included in the 504 loan to reduce up-front cash outlay
  • Fixed interest rate on the SBA loan (10, 20, or 25 years) for life of the loan

Contact us to schedule a free Lender Training seminar for your Commercial Lending Department. We will discuss the SBA 504 Loan Program, recent program changes, and the advantages to lenders and their small business customers.