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Our Current SBA 504 Rates
The 504 Loan Program provides growing businesses with long-term, fixed-rate financing for major fixed assets such as land, buildings, machinery and equipment. A typical 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from CMDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and an equity injection of at least 10 percent from the small business.
The maximum SBA debenture is $5 million when meeting certain job creation criteria or community development goals. Generally, a business must create or retain one job for every $65,000 provided by the SBA except for "Small Manufacturers" which have a $100,000 job creation or retention goal.
The maximum SBA debenture is $5 million when the project meets a public policy goal. The public policy goals include:
The maximum debenture for "Small Manufacturers" is $5.5 million. A Small Manufacturer is defined as a small business concern that has:
Its primary business classified in sector 31, 32, or 33 of the North American Industrial Classification System (NAICS); and All of its production facilities located in the United States.
The maximum debenture for "Energy Efficiency Projects" is $5.5 million. The project must:
Reduce the borrower's energy consumption by at least 10%; or Generates renewable energy or renewable fuels, such as biodiesel or ethanol production
Proceeds from 504 loans must be used for fixed asset projects such as:
The 504 Program cannot be used for working capital or inventory, consolidating or repaying debt, or for refinancing.
Interest rates on 504 loans are pegged to an increment above the current market rate for five-year and 10-year U.S. Treasury issues. Maturities of 10 and 20 years are available. See Current Interest Rates for SBA 504 Loans