U.S. Small Business Administration – 504 Loan Program for Small Businesses

The SBA’s 504 Loan provides fixed-rate, long-term financing for up to 20 years – SoHo Business

The 504 Loan Program provides approved small businesses with long-term, fixed-rate financing used to acquire fixed assets for expansion or modernization.  504 loans are made available through Certified Development Companies (CDCs), SBA’s community based partners for providing 504 Loans.

• Borrower requirements of only 10% equity contribution – loans are administered through a partnership between an SBA-approved lender that covers 50% of the project cost and a community development corporation that funds up to 40%
• Loans of up to $5 million and terms of 20 or 25 years
• Eligible uses: fixed asset purchases like real estate or equipment

What is the 504 Loan Program?

The SBA 504 Loan program is a powerful economic development loan program that offers small businesses another avenue for business financing, while promoting business growth, and job creation.  As of February 15, 2012, the $50 Billion in 504 loans has created over 2 million jobs.  This program is a proven success and win-win-win for the small business, the community and participating lenders.

Learn more about The Pace University Small Business Development Center’s (SBDC) mission and about U.S. Small Business Administration’s 504 Loan Program HERE