SBA 504 loans: Commercial mortgage financing
The SBA 504 loan program provides growing businesses with long-term, fixed-rate financing for major purchases.
Delivered by Certified Development Companies (CDCs), this program is designed for small businesses requiring commercial mortgage financing. The Bancorp works closely with CDCs and the SBA to provide funding.
Use of proceeds:
Purchase, construction or renovation of commercial real estate (CRE), purchase of heavy equipment/machinery. Program does not allow for working capital or trading asset financing.
Loan amounts:
Maximum loan amount up to $10 million in total financing
Terms:
Standard structure is 50% first mortgage and 30-40% second mortgage debenture
Down payment:
10% for existing businesses and multi-use facilities; SBA requires additional 5% for special-use properties, up to maximum 20% down payment
Loan Uses Include:
Commercial real estate financing
From special-use facilities to multi-purpose properties to land purchase, we offer commercial real estate financing tailored to your business venture.
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Equipment purchases
Whatever your equipment needs — food service, construction, medical, fitness, warehouse or other specialties — our financing options help improve your assets and your bottom line.
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Ground-up & leasehold construction
Building or refitting a facility takes careful planning and the right financing plan. Our construction loan team helps you develop a blueprint for success.
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