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 2017, the SBA guaranteed approximately $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 | The SBA 504 loan can provide up to $5 million for small businesses, and up to $5.5 million for small manufacturing companies |
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 |