SBA 504 Loan Program for Development Companies

Improve local real estate and the community with long-term financing from an SBA 504 Loan

The SBA 504 Loan Program provides long-term financing for economic development within a community. The program is designed to help small businesses requiring “brick and mortar” financing. Money borrowed with an SBA 504 loan can be applied to land and building purchases, existing building and lot improvements, new construction, long-term equipment purchases and more.

* SBA 504 loans are for terms of either 10 or 20 years. The interest rate on the SBA 504 loan is set when the SBA sells the bond (debenture) to fund the loan, and the interest rate is then fixed for the duration of the term. The small business owner's monthly payment includes program fees and a loan loss subsidy fee, which are financed as part of the loan. SBA 504 debentures are fully amortized securities and have no balloon payments. To compare interest rates, see the U.S. Treasury bond rates.