Loan Programs
SBA 504 Loans
Long-term, fixed-rate financing for major fixed assets. Structured in partnership with a Certified Development Company (CDC) — 50% bank, 40% CDC, 10% borrower.
$5.5M
Max Loan Amount
40%
CDC Portion
10–25 yrs
Term Length
10%
Down Payment
Who Qualifies
- For-profit US business with tangible net worth under $20M
- Average net income under $6.5M after taxes for two years
- Must occupy at least 51% of financed commercial real estate
- Cannot be engaged in passive investment activities
- Must meet SBA size standards for your industry
Common Uses
How LenderMatch Helps
SBA 504 requires coordination between a conventional lender and an approved CDC. LenderMatch identifies bank partners with active 504 portfolios in your region and connects you with the CDCs they work with — streamlining a process that typically takes weeks of cold outreach.
Frequently Asked Questions
How is an SBA 504 loan structured?
The conventional bank provides 50% of the project cost, the CDC provides 40% (backed by the SBA), and the borrower contributes 10%. This structure lowers your down payment compared to a conventional commercial loan.
Can I use SBA 504 for a new business?
Startups (under 2 years old) may qualify but typically need to contribute 15–20% down instead of 10%, reflecting the higher risk. Strong personal assets and industry experience help.
What is a Certified Development Company (CDC)?
CDCs are nonprofit intermediaries certified by the SBA to administer the 40% debenture portion of 504 loans. Each CDC operates in a specific geographic area. LenderMatch connects you to active CDCs in your market.
How long does SBA 504 approval take?
Typical 504 closings take 45–90 days due to the dual-approval process (bank + CDC + SBA). Starting with an experienced bank partner significantly reduces delays.
Are SBA 504 rates fixed or variable?
The CDC/SBA portion carries a fixed rate tied to 10-year Treasury notes, reset monthly. The bank portion rate varies by lender and may be fixed or variable.
Related Programs
Free 2-minute qualifier. No credit check.
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