SBA 504

The SBA 504 Program:

  • Long term, fixed rate financing for eligible small businesses.
  • The financing is provided specifically for the acquisition of capital assets.
    (Land, Buildings, Equipment, etc.)

The Goals of the SBA 504 Program are:

  • A contribution to the economic development within a community.
  • Job creation and retention.

SBA 504 Project:

  • Senior Lien from lender covering 50% of project cost.
  • Junior Lien from the CDC (backed by a 100% SBA-Guaranteed debenture) covering 40% of the project cost.
  • Contribution by the small business borrower covering 10% of the project cost.
  • The maximum SBA debenture is $1,500,000 for meeting the job creation criteria or community development goal.
  • Generally, a business must create or retain (1) job for every $50,000 provided by the SBA.
  • The maximum SBA debenture is $2,000,000 for meeting public policy goals and up to $4,000,000 on manufacturing.