Your Key to Commercial Success
Are you ready to take the next step in growing your business? The SBA 504 Loan Program lets you take bold steps to grow your business while keeping your cash flow strong. With this program, you can access up to $5.5 million in financing at below-market, fixed interest rates, with only 10% down in most cases.
With the SBA 504 Loan, you can:
- Purchase or build real estate for your operations.
- Renovate facilities to support growth.
- Acquire machinery or equipment lasting 10+ years.
- Adopt systems to cut costs and boost sustainability.
You’re not just investing in growth—you’re building a foundation for sustainable success by financing your project with an SBA 504 Loan.
How the SBA 504 Loan Works
A simple, three-part structure:
- 50% from a local bank (first mortgage)
- 40% from SBA/SCKEDD (second mortgage)
- 10-20% borrower down payment
Key Benefits
- 90% financing – Keep more cash in your business
- Fixed interest rates – 10, 20, or 25-year terms, no balloon payment
- Soft costs included – Appraisals, legal fees, and more covered
- No additional collateral required
- Maintain your banking relationship or get matched with a lender bank or find a lender
Your Guide to the SBA 504 Loan Process
Tackle the SBA 504 loan process with confidence by knowing exactly what to expect. Review the checklist of application requirements beforehand to stay prepared, ensure a smooth process, and inspire hope for the success of your business.
Follow these steps to move through the process confidently.
1. Submit Your Application
Provide the necessary details for your loan. During this phase, SCKEDD evaluates your eligibility and creditworthiness, collaborates with you to structure the loan, and secures internal approval.
Estimated Timeframe: 1-2 weeks
2. Secure SBA Approval
Once your loan application is finalized, SCKEDD submits it to the SBA for review and authorization. The SBA examines your proposal, approves the loan, and clears the project to move forward.
Estimated Timeframe: 2-3 weeks
3. Activate Interim Financing
Move your project forward during this phase.
- Receive 504 Terms and Conditions from the SBA.
- Work with your partnering bank as they disburse the interim loan.
- Complete purchases, construction, or renovations.
Estimated Timeframe: Varies based on project complexity (2-6 months)
4. Finalize and Close
Move your project forward during this phase.
- Receive 504 Terms and Conditions from the SBA.
- Work with your partnering bank as they disburse the interim loan.
- Complete purchases, construction, or renovations.
Estimated Timeframe: 1-2 months
Is My Business Eligible?
At-a-glance checklist
- For financing the purchase, improvement, or refinance of owner-occupied commercial real estate and fixed
- The business must be a for-profit entity in the United States
- Applicant Business must be 100% owned by a U.S. citizen or legal permanent resident
- Must occupy at least 51% of the property, or 60% for new construction
- Have a tangible business net worth of $20 million or less
- Have an average net income of $6.5 million or less (after federal income. taxes) over the past two years
- Cannot have defaulted on a federal loan or be involved in political, lobbying, gambling, speculative, or passive income activities
- Demonstrate the ability to repay the loan on time from business cash flow, historically or with detailed and verified projections and assumptions
- Create or retain jobs, or meet a public policy goal (such as supporting minority- or woman-owned businesses, rural development)
Current and Historical SBA 504 Loan Rates
Stay informed about the latest SBA 504 loan rates and see how they’ve changed over time. These rates include fees to the CDC, SBA, and central servicing agent, ensuring transparency and accuracy.
Current Rates (April 2025)
6.432%
2025 (Jan-Apr)
6.512% - 6.432%
2024
6.690% - 5.762%
2023
7.129% - 5.880%
2022
6.529% - 3.213%
Current Rates (April 2025)
6.450%
2025 (Jan-Apr)
6.581% - 6.450%
2024
6.760% - 5.829%
2023
7.180% - 5.952%
2022
6.452% - 3.067%
Current Rates (April 2025)
6.337%
2025 (Jan-Apr)
6.642% - 6.337%
2024
6.892% - 5.865%
2023
7.207% - 6.433%
2022
6.534% - 3.070%
For a more detailed breakdown of historical rates, visit the Small Business Finance 504 Loan Rate History.
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