SBA 504 Loan Resources & Commercial Real Estate Financing
An SBA 504 loan is a government-backed, long-term financing solution designed to help business owners purchase or construct owner-occupied commercial property with low equity requirements. By offering financing options starting at just 10% down, SBA 504 loans allow growing businesses to preserve working capital while acquiring high-value commercial assets.
Featured SBA 504 Loan Articles
I Want to Own It: SBA 504 Loan & Prepayment Guide
If you say ‘I want to own it’ when looking at commercial property, an SBA 504 loan offers 10% down. Learn eligibility rules, structuring details, and debenture prepayment schedules before finalizing your commercial acquisition.
Navigating SBA 504 Loan Terms & Commercial Expansion
Transitioning from leasing to property ownership is a critical step in business growth. Before securing financing, explore 5 signs your business is ready for a commercial mortgage and review a practical guide to tailored financing for commercial property buyers. For income-producing investment assets alongside owner-occupied property, compare options with DSCR loans.
Frequently Asked Questions About SBA 504 Loans
- What is an SBA 504 loan?
- An SBA 504 loan is a long-term, fixed-rate financing structure supported by the U.S. Small Business Administration, designed to help eligible small businesses acquire owner-occupied commercial real estate with low down payments.
- What is the down payment requirement for an SBA 504 commercial building purchase?
- SBA 504 financing generally requires a minimum 10% down payment for standard owner-occupied properties, leaving 50% funded by a primary commercial lender and 40% funded through an SBA Certified Development Company (CDC) debenture.