Estimate your SBA 504 loan structure — see the three-part split (borrower, CDC, bank), monthly payments for each portion, and total project financing.
Three-part financing structure for owner-occupied CRE
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SBA 504 splits your project into three parts: you put 10% down, a CDC (Certified Development Company) provides 40% via an SBA-backed debenture at a fixed rate, and a bank covers the remaining 50% as a conventional first lien. This structure gives you 90% financing at a blended rate below market.
You must be a for-profit business, operate in the US, have tangible net worth under $15M, and occupy 51%+ of the building. The property must be owner-occupied — pure investment properties don't qualify. Credit score 680+ is typical, and you need demonstrated ability to repay from business cash flow.
SBA 504 covers land and building purchase, new construction, renovations, machinery and equipment (10-year CDC term), professional fees, and certain soft costs. It does NOT cover working capital, inventory, or debt consolidation. The SBA portion maxes at $5M ($5.5M for manufacturing and energy).
Only 10% down vs. 25–30% conventional. The CDC portion is fixed for 20–25 years (no rate risk). Below-market blended rate saves thousands annually. No balloon payment on the CDC portion. And SBA guarantee means lenders are more willing to approve borderline deals.
Common questions about SBA 504 financing.
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