An SBA 504 loan is perfect for purchasing fixed assets and for making large investments in your business's future. The 10% to 15% down payment is low compared to conventional loans. Plus, SBA 504 loans come with some of the lowest interest rates around.

In general, SBA 504 loans are designed for project amounts from $2.50 million and up to $12 million or so.

The 504 program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land, buildings, machinery, and equipment. The Certified Development Corporation (CDC) is a non-profit corporation set up to contribute to the economic growth of its community. The CDC works in conjunction with the SBA and private sector lenders to provide small business financing. To be eligible, a business must be operated for profit and fall within the size standards set by the SBA. Under SBA 504, a business is defined as a company that does not have a tangible net worth in excess of $8.5 million and does not have an average net income in excess of $3.5 million, after taxes, for the preceding two years.

How Financing Is Structured

A bank or other lender finances 50% of the project cost and takes a first mortgage (lien) position on the assets financed. CDC, through the SBA 504 loan, finances up to 40% of the project cost and takes a second mortgage position. The borrower then contributes a down payment of as little as 10%.

Loans can include the acquisition of the commercial real estate, renovation of the commercial real estate, new construction, and/or heavy equipment. Loans typically involve a first lien on the commercial property of 50% of the total project amount, and a second lien loan, secured by a 100% SBA-guaranteed debenture covering 40% of the total project cost. Finally, a down payment contribution, typically of only 10%, comes from you, the Borrower. These loans are for commercial real estate properties (and/or heavy equipment) that are a minimum of 51% owner-occupied. We offer very competitive interest rates, 20 to 30-year amortizations, and exceptional customer service allowing for 24-48hour pre-approvals and quick closings, often within 45 to 60 days.

Eligible Borrowers:

  • For-profit, non-publicly traded businesses
  • Tangible business net worth (including affiliates) not to exceed $15 million
  • Average net income of the business not to exceed $5 million over the previous two years
  • Ownership must generally be comprised of 51% U.S. citizens or Legal Permanent Residents (some exceptions apply)

Examples of Property Types:

  • Medical offices or medical facilities (such as labs and clinics)
  • Office buildings (including office condos)
  • Warehouses (and other industrial properties)
  • Daycare facilities (for children or adults)
  • Free-standing restaurants
  • Limited-service flagged hotels (some unflagged destination hotels will be considered)
  • Auto repair shops
  • Assisted-living facilities
  • Call to ask about many other property types that are eligible

Ineligible Borrowers:

  • Non-profits (except sheltered workshops)
  • Passive holders of real estate and/or personal property
  • Lending institutions (mortgage brokers and correspondent lenders are eligible)
  • Life insurance companies (franchised agents are eligible)
  • Businesses located in a foreign country
  • Businesses selling products or services through a pyramid plan
  • Gambling concerns
  • Businesses which restrict patronage
  • Government-owned entities (excluding Native American tribes)
  • Consumer and marketing cooperatives (producer cooperatives are eligible)
  • Businesses engaged in loan packaging
  • Businesses that have previously defaulted on a Federal loan
  • Businesses engaged in political or lobbying activities

Ineligible Use of Funds:

  • Working capital
  • Inventory
  • Rolling stock
  • Business, goodwill or blue sky

SBA loans are subject to SBA eligibility guidelines and all loan products are subject to approval. Other terms and conditions may apply.


Cups of Coffee


Satisfied Clients


States Lending



Commercial Capital Funding Solutions, LLC


14735 Calusa Palms Drive #204
Fort Myers
FL 33919

21031 Ventura Blvd., Suite 415
Los Angeles
CA 91364