SBA 504 Loan Structure

Through the SBA 504 loan program, CMDC provides up to 40% of the eligible project costs. The borrower provides an equity injection of 10% to 20% and a private lender provides up to 50% of the project costs. 

Use of Funds  Source of Funds
  Land $100,000    Bank $500,000 50%
  Building $800,000    CMDC/SBA 504 $400,000 40%
  Soft Costs $100,000    Equity $100,000 10%
  Total $1,000,000    Total $1,000,000 100%

 

  • CMDC does not provide interim financing. CMDC provides permanent take-out financing when the project is completed and the loan is closed in accordance with SBA/CMDC loan covenants and restrictions. 
  • $5.5 million is the maximum amount that CMDC/SBA will loan or guarantee for most projects. 
  • The minimum 504 project amount is $125,000. For projects smaller than $125,000, please see the SBA 7(a) Loan Program.   
  • The rate on the 504 loan is set when the loan is funded. This typically occurs 45 to 60 days after the completion of construction or the purchase real estate, machinery, etc. The rate is then fixed for the term of the loan.