Get an SBA 504 Loan for Your Small Business
If you’re looking for a way to purchase real estate, heavy equipment, or other fixed assets for your small business, an SBA 504 loan could be a fantastic solution. In 2023, the SBA guaranteed approximately $6.5 billion in 504 loans, making it one of the fastest growing loan programs the SBA has to offer. Here are a few facts about the SBA 504 loan:
Loan Size | SBA 504 loans don't truly have a maximum, but most loans are between $1 and $5 million. |
Loan Term | Up to 25 years |
Interest Rates | Vary, but current maximum interest rates for the CDC portion of an SBA 504 loan are between 2.08% and 2.18% above the relevant U.S. Treasury Index |
Land, real estate, heavy equipment, and other fixed assets. 504 loans are not allowed for working capital. | |
Credit Score | No official minimum score set by the SBA, but lenders typically require scores of 680+ |
Down Payments | Minimum 10% down payment required for most borrowers |
Timing | Typically takes between 65 to 75 days to close on real estate loans; heavy equipment loans may close faster |