What Is the Required SBA 504 Loan Down Payment?

SBA 504 Loan Down Payment Requirements

When you take out an SBA 504 loan, you will be required to make a down payment. That down payment will generally be 10% of the loan’s total value. However, there are situations in which you could be required to put down significantly more money.

For instance, if you run a special purpose business (as listed by the SBA), or your business has not been in operation for at least two years, then you will be required to put down 15% of the loan’s value. If your business is considered a special purpose property and it has not been in operation for two years, then you will be required to put down 20% of the loan’s value.

In all instances, the conventional lender’s contribution remains 50%. The CDC’s contribution reduces, though, moving from 40% to 35% if you’re required to pay 15% down, and from 35% to 30% if you’re required to put down 20% of the loans’ value.


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