SBA 504 Loan

SBA 504 Loan OverviewSBA 504 Loan Overview

The SBA 504 loan is a great option for business owners who are ready to grow their businesses since it is designed to provide financing for fixed assets, such as real estate or building acquisitions, at below market rate. Its flexible structure allows business owners to put down less money, keeping more working capital in their businesses.

Reach new heights in your business with the SBA 504 Loan Product.


SBA 504 loans are primarily used to purchase long-term fixed assets. These assets can include commercial real estate, property improvements, furniture, fixtures, and equipment, and can also include ground-up construction.


The SBA 504 Loan Program typically has terms up to 20 years with a fixed rate on the CDC portion. At FNB Small Business Finance, we typically offer a 25-year term on the First Mortgage with rates that adjust every 5 years. There is no minimum size for an SBA 504 Loan, and they can typically be used for projects up to $10 Million or more.

To be eligible for the SBA 504 Loan Program, a business must be for-profit and fall within a size limit of having a tangible net worth of less than $15 Million and have had an average profit of less than $5 Million in the last two years. These loans are subject to underwriting by the bank, the CDC, and the SBA. SBA 504 loans have a job creation requirement of one new job for every $65,000 of loan proceeds.

Pre-Application Checklist:

Documents to have available for a call with our team:

  • Outline of proposed transaction including costs
  • Three years tax returns on current and/or target business
  • Interim Financial Statements on current and/or target business
  • Personal Financial Statements on all current and/or potential owners over 20%
  • Three years personal tax returns on all current and/or potential owners over 20%
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