Why rent when you can own?

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.

Today’s Rates*

SBA 504


SBA 504


SBA 504


SBA 504


SBA 504


View SBA 504 Rate History
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FAQ: SBA 504

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 June 6, 2024, and change monthly with each funding cycle.

The power of ownership

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"If you can get into a 504 and buy your building … now you’re investing in your own asset."

Chris Kuran, President, Waterstone Faucets

The benefits of an SBA 504 Loan

Preserve cash – down-payment is only 10%
Below-market fixed interest rate
25, 20 or 10 year term options
Build owner equity
Tax savings
No additional collateral needed
Only 51% occupancy required
Fixed occupancy costs

Buy vs. Lease

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.


Download our checklist to help you determine your best option

Download Checklist

Questions to Ask

See our list of questions to consider when comparing buying vs. leasing

Learn more

Top 3 Reasons

See why buying a building for your business is a smart business strategy

Read more

SBA 504 Loan Structure

CDC / SBA (40%)

Bank (50%)

Business Owner (10%)

How can I use an SBA 504 loan?

Purchase, Construct or Improve Commercial Real Estate

Count on knowing your occupancy costs with a below-market fixed rate.

Buy & Install Heavy Equipment for your Small Business

Get equity, tax and cash flow advantages by owning your heavy equipment.

SBA 504 loan eligibility requirements

At least 51% Owner Occupied

For profit

A sole proprietorship, corporation, partnership or LLC

Business net-worth below $20 million and a net-profit after taxes below $5 million with the last two operating years

Business is located in our lending footprint: California, Arizona or Nevada

Top questions we hear from small business owners:

  • Lower down-payment requirements – only 10%
  • Long repayment terms (25, 20 and 10 year options)
  • Fixed rate for the term of the loan
  • Projected income is considered, not just historical cash flows
  • Collateral is typically the building being financed

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

SBA 504 Refinance Program

Refinance Non-SBA guaranteed commercial real estate loans into a more affordable SBA 504 loan

Learn more about the program:

  • Key Guidelines
  • Eligible Project Costs
  • Expenses
  • How to Evaluate Eligibility
  • Steps to Qualify Existing Debt
  • Loan-to-Value Limitations
SBA 504 Refi Document Preview

SBA 504 Green Loan

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 an aggregate not to exceed $16.5 million from SBA financing. Individual projects can be greater than $16.5 million but keep in mind the combined cap for SBA Green lending.