SBA 504 Loans

SBA 504 Loan Program

SBA 504 loans are all about fueling the economy. They help business owners finance fixed assets like land, building and equipment. SBA 504 loan borrowers can purchase land or buildings, construct new facilities, remodel existing structures, purchase machinery / equipment and refinance existing business debt.

FIXED RATES – The BIG Benefit of the SBA 504 Loan is the below market FIXED Rate offered on the SBA portion of the loan. In addition, the SBA 504 loan has terms of between 20 and 25 years for real property and 10 years for equipment.

LOAN LIMITS – SBA 504 loans have a large loan limit. Borrowers can fund in excess of $13,000,000 using the standard SBA 504 program and the amount borrowed can exceed $40,000,000 by using the SBA 504 GREEN Loan program.

UNIQUE STRUCTURE – The SBA 504 loan program has a unique structure. It’s actually not one loan. The 504 loan program consists of two (2) loans. There is a conventional loan which represents 50% of the project costs and an SBA loan (underwritten by a Certified Development Company) which represents 30% to 40% of the project costs. The remaining 10% to 20% is the responsibility of the borrower.

Eligible Uses of SBA 504 Funds

  • Purchase land and improvements (operating company must occupy 60% of new buildings and 51% of existing buildings.)
  • Construction of new facilities, or modernizing, renovating, or converting existing facilities.
  • Refinancing of Existing Debt
  • Machinery and Equipment
  • Soft costs including but not limited to, title searches, appraisals, environment reports, architect fees, interim loan interest, certain bank fees, furniture and fixtures

Ineligible Uses

  • Inventory
  • Working capital
  • Goodwill / Intangibles

For more information on the SBA 504 Loan / SBA 504 GREEN loan, contact Coast.

For More Information Call 1-800-400-0365 or Send Coast a Message