About Our SBA 504 Loan
504 Capital Corporation financing is provided in tandem with bank financing and equity, invested by the borrower, so the burden is not all on you as a small business owner.
A project financed by 504 Capital has three sources of funding:
- 504 Capital Corporation: 40% of total project cost (with 504 holding a second mortgage position)
- Commercial Lender: 50% of total project cost (with lender holding the first mortgage position)
- Small Business Borrower: 10% of total project cost (an equity investment)
504 Capital’s loans can have a term of 25 years, 20 years, or 10 years. Regardless of which term is right for you, you’ll receive a low competitive fixed rate.
SBA 504 Loans Lender: 50%
504 Capital Corporation: 40%
Borrower: 10%
Small Business Expansion Loans With Big Impact
504 Capital Corporation is a nonprofit organization helping small business in Virginia, Washington, D.C., Maryland, and North Carolina obtain the financing they need through SBA 504 Lending program.
We provide small business owners with market rate financing at a minimum down payment, aiding in the purchase of crucial fixed assets such as real estate, property, and machinery.
Our Financing Services May Enable You to do The Following:
- Purchase land or property
- Purchase equipment or machinery
- Build or renovate facilities
Key Advantages Dividends For Years to Come
504 Capital cares about our clients and our goal is always to elevate you to the next level, helping your small business succeed. Our financing has enabled our clients to achieve great things, including the purchase of commercial real estate and heavy equipment, with a down payment as low as 10%. We’ll cover 40% on a typical lending transaction, and the remaining 50% comes from the lender.
As the small business owner, you receive tax benefits and appreciation on the real estate, as well as locking in the occupancy costs for the long term, with financing tailored to your unique needs.
Low Down Payment & Enhanced Cash Flow
10% down payment is all it takes to get started. With financing available for up to 90% of the total project cost, conserve your working capital and retain liquidity to meet operational needs. 504 Capital makes it easy.
Long Term Financing at Competitive Rates
Pay for your facilities over the long term with low monthly payments. 504 Capital Corporation real estate financing can be fully amortized over 25 years, and equipment financing can be fully amortized up to 25 years as well IF the useful life warrants the term.
Ownership & Project Structuring
SBA 504 financing can support a variety of ownership and occupancy structures, including projects involving multiple operating businesses or real estate holding entities. These structures are commonly used by professional practices and multi-entity businesses. 504 Capital works closely with lenders, borrowers, and their legal and tax advisors to ensure each project is structured in compliance with SBA guidelines. We recommend that all borrowers consult with their own legal and tax professionals to determine the best ownership structure for their specific situation.
Veterans and Spouses: Vet Loan Advantage with 504 Capital
Veteran-owned businesses and spouses can lower out-of-pocket costs on qualifying SBA CDC 504 loans through our year-round Vet Loan Advantage Program.
What you can save
We pay half of the Third-Party Lender Fee, up to $3,000.
We reduce the processing fee to 1%
Who may qualify
Majority veteran-owned small businesses and spouses of veterans (ownership and documentation requirements apply).
How to get started
Tell us you are a veteran or spouse when you reach out. We will confirm eligibility, outline your savings, and coordinate the structure with your bank or non-bank lending partner. For background on our expanded veteran services and service area, learn more.