The SBA 504 loan program is purpose-built for small businesses buying commercial real estate or heavy equipment. It can be one of the most affordable ways to own your building.
How the structure works
A 504 loan combines three pieces: a bank loan covering 50%, a Certified Development Company (CDC) loan for 40%, and a 10% borrower down payment. The CDC portion is fixed-rate and pegged to 10-year Treasury notes — typically below market.
Who qualifies
Your business must occupy at least 51% of the building, operate for profit, and meet SBA size standards. Most for-profit small businesses fit.
Why owners love 504
Long fixed-rate terms (10, 20, or 25 years), low down payments, and below-market rates on the CDC piece make this one of the most affordable real estate paths for small business owners.
