SBA 504
Fixed, below-market rates and low down payments provide predictability and cash for what really matters—innovation and growth.
Low rates, longer terms, and low down payments? SBA 504 rolls all three into one incredible loan.
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Funding from $50,000 to $5.5 million+
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Approval in as fast as 4 weeks
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Below-market, fixed interest rates (see rates)
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25, 20-, or 10-year terms
What can I use an SBA 504 loan for?
From purchasing your dream location to major renovations—SBA 504 gives you the flexibility to make it happen
New construction
Building from the ground up? We love helping businesses create exactly what they need.
Purchase a location
Stop writing rent checks that build someone else's wealth, and build your own equity instead.
Purchase land
Sometimes the perfect opportunity is securing land for current or future expansion.
Refinance existing debt
Stuck with commercial mortgage rates that make you wince? Transform your monthly payment into something affordable.
Equipment
Heavy machinery, HVAC systems, or other heavy machinery that you'll use for more than 10 years.
Major renovations
Modernize, renovate, or improve your current building or go green with energy effcient features.
SBA 504 is the ultimate team effort
Typical SBA 504 loan structure
SBA 504 loans work a bit different, in a way that we like to think of as a team effort. A commercial bank, RBAC, and you all bring funds to the table to make your project happen. Don't have a banking relationship yet? No worries—we work with great partners and can make an introduction.
You contribute as little as 10% down (start ups and special cases may require a higher down payment)
RBAC provides an SBA 504 loan for 40% of your project costs
Your bank provides 50% to complete the financing
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Do I qualify for SBA 504?
The answer to whether you qualify for 504? We figure that out on a case-by-case basis—contact us if you're interested. Here are some good-to-knows upfront:
You must meet SBA’s definition of a small business. This means having a tangible net worth of under $25 million, and an average net income after federal income taxes of less than $6.5 million (for the past 2 years).
Most types of for profit-companies operating in the U.S. or a U.S. territory are eligible. Nonprofits and passive investment companies (such as real estate investment) are not eligible.
504 funds must be used for long-term fixed-asset projects, such as purchase of owner-occupied commercial real estate; purchase of land or land improvement; construction, renovation, or modernization of facilities; or purchase of heavy equipment or machinery with a useful life of at least 10 years. 504 loans cannot be used for working capital, inventory or operating expenses, debt consolidation, unless the debt was for fixed assets (but another RBAC loan product can help—just ask!)
If your SBA 504 loan is used to buy owner-occupied real estate, your business must occupy at least 51% of an existing building, and at least 60% of a newly constructed building.
Your cash flow must demonstrate an ability to repay your 504 loan.
Your project must create or retain jobs or meet certain public policy goals, such as revitalizing a business district, expanding exports or manufacturing, supporting minority-, veteran-, or woman-owned businesses, or reducing energy use by 10% or using renewable energy. Not sure if your project meets these requirements? We can help you determine a plan to meet community development goals.
Personal guarantees are required from all owners of 20% or more of the business.
You must be up-to-date on all federal debt, including student loans and taxes.
Start ups and new businesses must have a sound business plan and demonstrate management capability.
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