About the SBA 504 Loan

The SBA 504 Loan Program is used to finance the purchase of fixed assets, including owner-occupied commercial real estate and equipment. Often referred to as a 50/40/10 loan, the program offers up to 90% financing for existing businesses. Typically the First Trust Lender (in our case, First National Bank Small Business Finance) would provide 50% financing, an arm of the SBA called a Certified Development Company (CDC) provides 40% financing, and the borrower injects 10% of the project cost in equity.

A Flexible Commercial Finance Product

The SBA 504 Loan Program typically has terms up to 20 years with a fixed rate on the CDC portion. At First National Bank 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.

Things to know before you apply:

Depending on your type of organization, we may need one or more of the following documents when opening your account:

  • Department of State printout of business registration/Government-issued business license
  • CPA-signed tax return
  • Articles of Incorporation or Articles of Organization
  • Bylaws or Operating Agreement
  • Partnership Agreement

Have the following items available for your meeting with our experienced team:

  • All current mortgage statements
  • Current bank statements and/or account balances
  • List of all owners having 20% or more ownership in the subject business along with any affiliates (if applicable)
  • List of all current business debts and their respective monthly payments
  • Tax Identification Number for the business and/or its affiliates.
  • DUNS (Data Universal Numbering System) number

See How We’ve Helped Other Businesses


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