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 or 20 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.