An SBA 504 loan is a government-backed loan designed to help small businesses purchase commercial real estate and equipment. It’s structured with 50% bank financing, 40% SBA funding through a Certified Development Company like Statewide CDC, and 10% from the borrower.

• Low Down Payments: Only 10% down payment—free up your cash
• Below-Market, long-term fixed Rates: Fully amortized with no additional collateral required
• Long Repayment Terms: 10 years for equipment and up to 25 years for real estate.
• Ideal for businesses looking to purchase or upgrade real estate, buy heavy machinery, or acquire large equipment.

Must be U.S.-based, occupy at least 51% of the purchased property, and for-profit small businesses with a net worth under $20 million and an average net income under $6.5 million over the last two years may be eligible.

SBA 504 loans typically range up to $5 million for most borrowers, and up to $5.5 million for manufacturers or energy-efficient projects.

504 loans can be used to purchase land, commercial buildings, machinery, or to renovate existing property for business use.

Most SBA 504 loans close within 30–60 days, depending on the complexity of the project and how quickly documentation is submitted.

Yes, the property or equipment you are financing typically serves as the collateral for the loan.