You can use an SBA 504 loan to buy, construct or improve commercial real estate or to purchase heavy equipment. Talk to one of our SBA 504 loan experts to learn how you can take advantage of a long-term, fixed rate and low down-payment (only 10%) SBA commercial real estate loan.
Many of our borrowers find that their loan payment ends up being less than what they were paying in rent. See below for details on rates, loan amount, eligibility, loan structure, key benefits and more.
SBA 504
Current SBA 504 25 year standard rate: 6.093%
Current SBA 504 25 year refi rate: 6.122%
Current SBA 504 20 year standard rate: 6.160%
Current SBA 504 20 year refi rate: 6.190%
Current SBA 504 10 year standard rate: 6.459%
See the top questions we hear from small business owners who are considering buying a commercial building. Get answers on timing, fees and loan size.
*For the SBA 504 Rates: Includes fees to CDC, SBA, and central servicing agent; based on pricing published by NADCO. The SBA 504 rates listed above are effective December 5, 2024, and change monthly with each funding cycle.
While there are multiple SBA loans that can be used for real estate and equipment, the SBA 504 loan has many advantages.
We’re here to answer your questions, explain the process and help you navigate the path to getting financing to buy a building for your business.
CDC / SBA (40%)
Bank (50%)
Business Owner (10%)
Count on knowing your occupancy costs with a below-market fixed rate.
Get equity, tax, and cash flow advantages by owning your heavy equipment.
Straight purchases usually require no more than 60 days to fund. If construction is involved, this can extend the process.
Fees vary by deal size and range from $3750-$5,000. Additional fees may apply if specific documents are required to be reviewed such as a land lease.
Yes, “soft costs” (e.g. appraisals, environmental, construction interest, closing costs) can also be financed in the 504 loan, allowing the small business to preserve working capital.
The business must occupy 51% of an existing building purchase or 60% if constructing a new facility.
Long-term machinery and equipment with a useful life greater than ten years (e.g., a printing press).
We understand that not all of our borrowers are able to qualify for the SBA 504 loan product due to its eligibility requirements. To bridge that gap, we’ve created the new Impower loan. Learn more here
Refinance Non-SBA guaranteed commercial real estate loans into a more affordable SBA 504 loan
Learn more about the program:
The SBA 504 Green Loan offers up to $5.5 million in financing per project from the SBA. Small businesses can secure multiple SBA 504 Green Loans, each with the maximum of $5.5 million and no aggregate cap.
"When I tell people how I bought a building and was got a loan they are surprised. For me, it is the American dream."
Mia Davis, Mikko Sushi
"As an immigrant, we came here with very little and we got the opportunity to work hard and open our own business. Now I look back and I am very happy and very thankful for being in this country."
Duke Huynh, Owner, Phở Ca Dao
"We decided to move forward with the SBA loan and to this day it's been a great success as we were able to expand our operations, hire new people, and get us ready for the future."
Jesus Ramirez, JXR Constructors
