SBA 504 Loans Nationwide, Up to $5.5 Million Fixed Rate
π’ Long-Term Fixed-Rate Real Estate FinancingI’m Kevin Kermeen, a nationwide commercial loan broker, not a bank. SBA 504 loans are the program built for buying the building your business operates in, with a long-term fixed rate and as little as 10% down. The SBA funds 504s through Certified Development Companies, so I match you to the right CDC and bank partner for your project.
The 504 Structure: 50 / 40 / 10
SBA 504 loans split the project three ways across three funding sources. A conventional bank funds half, a Certified Development Company funds the SBA-backed portion, and you put in as little as 10%. That structure is exactly why you keep more cash in the business than a conventional purchase would allow.
The standard 504 structure is roughly 50% bank, 40% CDC and 10% borrower equity. Startups and special-use properties typically require 15% to 20% down. The down payment percentage is set by lender and CDC practice, not a fixed SBA figure.
Owner Bought His Building With 10% Down and Locked a Fixed Rate for 25 Years
One of the most common SBA 504 loans I place is an owner buying his own building. A business owner had been renting his space for years and watching the rent climb. He wanted to buy the building for $1.6 million but a conventional commercial mortgage wanted 25% down and a balloon in five years.
He called me. I matched him to the right CDC and bank partner for an SBA 504 loan: about 10% down in the 50/40/10 structure, with the CDC portion locked at a fixed rate for 25 years. He stopped paying a landlord and started building equity, with the payment fixed for the long haul.
That is the difference between a rigid bank and the right 504 partner. Don’t Beg the Bank! Get funded instead.
SBA 504 Loans Fund Major Fixed Assets, Not Working Capital
SBA 504 loans are purpose-built for assets that promote business growth and job creation. Per the SBA, it funds the real estate and heavy equipment your business will own and use, not the day-to-day cash. That focus is what earns SBA 504 loans their long fixed rate.
SBA 504 Loans to Buy a Building
Purchase existing buildings or land for your owner-occupied business, the most common use of SBA 504 loans.
Build a New Facility
Ground-up construction of new owner-occupied facilities for your growing operation.
Heavy Machinery and Equipment
Long-term machinery and equipment with at least a 10-year useful life, including AI-supported manufacturing equipment.
Improve and Modernize
Upgrade land, streets, utilities, parking lots, landscaping or modernize existing facilities.
Refinance Qualified Debt
Refinance debt that meets the SBA’s definition of qualified debt under the 504 rules.
Promote Growth and Jobs
The program is designed for fixed assets that expand your capacity and support job creation.
SBA 504 Loans vs SBA 7(a): Which One Fits?
This is the question I answer most about SBA 504 loans. The short version: a 504 is the fixed-rate loan for buying the building and the big equipment. A 7(a) is the flexible loan for everything else, including working capital. Here is the honest side-by-side.
| Feature | SBA 504 | SBA 7(a) |
|---|---|---|
| Best for | Owner-occupied real estate and heavy equipment | Acquisition, working capital, mixed use |
| Working capital | No | Yes |
| Rate | Fixed for the term | Capped, often variable |
| Max | Up to $5.5M (CDC portion) | Up to $5M |
| Structure | 50% bank / 40% CDC / 10% you | Single loan, one lender |
| Learn more | You’re here | SBA 7(a) loans |
Swipe to see all columns β
The maximum 504 loan is $5.5 million on the SBA-backed CDC portion; the bank first mortgage sits on top, so total project size can run higher. Rates on the CDC portion are fixed, pegged to an increment above the 10-year U.S. Treasury, and total roughly 3% of the debt in built-in fees that may be financed. Terms are 10, 20 or 25 years. A 650 FICO is a typical lender floor, not an SBA rule. Final rate, term and structure are set by the CDC and the bank. This is not a commitment to lend.
504s Run Through CDCs. I Find Yours.
A 504 is delivered through a Certified Development Company paired with a bank. The hard part is lining up the right CDC and bank for your project. That is my job.
Quick Pre-Qual
A simple review of your business, the property or equipment, and your numbers. No giant package to start.
I Match Your CDC and Bank
I send your project to the CDC and bank partner built for your asset type and most likely to approve it.
You Apply Through Them
You work directly with the CDC and bank, who underwrite and process the 504-structured financing.
Close and Own
You close on a long-term fixed rate, stop renting and start building equity in your own asset.
Who SBA 504 Loans Are, and Are NOT, For
SBA 504 loans are for fixed assets, not cash flow. I qualify deals honestly so neither of us wastes time. If you’re on the left, call me today.
β This IS for you ifβ¦
- βYou’re buying or building owner-occupied commercial property.
- βYou want a fixed rate locked for the long term.
- βYou’re buying heavy equipment with a 10+ year useful life.
- βYou’re a for-profit U.S. business under the SBA size and net-worth limits.
- βYou can put in roughly 10% and want to keep the rest of your cash.
π« This is NOT for you ifβ¦
- βYou need working capital or inventory … that’s a 7(a), not a 504.
- βYou’re buying passive rental or investment real estate.
- βYou need the money this week … 504s take real underwriting.
- βThe building is mostly leased to others, not owner-occupied.
- βYou won’t sign a personal guarantee.
Pre-Qualify for an SBA 504 Loan
Sixty-second SBA 504 loans pre-qualification. I personally review every submission, no call center, no junior rep.
Got it. I’m on it.
Your SBA 504 loans pre-qualification landed in my inbox. I personally review every submission and most responses go out within one business hour.
Watch for a call from me, Kevin Kermeen, I call directly, I don’t text.
Recent SBA 504 Loans From My Desk
A snapshot of the SBA 504 loans I match to the right CDCs and banks. Every project is different, yours starts with a conversation.
$1.6M Β· Owner-Occupied Building
Bought his own building with about 10% down, CDC portion fixed for 25 years.
$2.8M Β· New Facility Construction
Ground-up owner-occupied facility funded in the 50/40/10 structure for an expanding manufacturer.
$900K Β· Heavy Equipment
Long-life manufacturing equipment financed on a fixed-rate 504 with low money down.
How I Match SBA 504 Loans to the CDCs That Actually Close Them
Most owners hear “504” and assume their bank can just do it. Not quite, and the right structure is everything. SBA 504 loans run through a Certified Development Company paired with a bank, and not every CDC or bank wants every project. I match you to the CDC and bank partner built for your asset type, the pair most likely to approve and close your SBA 504 loans file, and stay on it with you through funding.
Here is the structure that makes SBA 504 loans special. The project splits roughly 50% conventional bank first mortgage, 40% CDC second at a long-term fixed rate, and 10% your equity. Per the SBA, the CDC portion is pegged to an increment above the 10-year Treasury and totals around 3% of the debt in built-in fees that can be financed. That low down payment and that locked rate are the whole reason an owner chooses a 504 to buy a building instead of draining liquidity on a conventional commercial mortgage with a balloon.
But SBA 504 loans are narrow on purpose. Per the SBA, it funds major fixed assets: buying or building owner-occupied real estate, long-life machinery and equipment, facility improvements, and qualified debt refinance. It cannot fund working capital, inventory, passive rental real estate, or speculation. If you need operating cash alongside the building, that is where a 7(a) comes in, and starting July 4, 2026 a qualified borrower can pair a 7(a) and a 504 for up to $10 million in combined SBA-backed financing.
So tell me the project. Buying the building your business occupies? An SBA 504 loan. Need working capital too, or a business acquisition? Compare an SBA 7(a) loan. Need to close fast before the 504 funds? An owner-occupied bridge loan can take out into SBA later. Building ground-up? See construction and development loans or an office building loan. Want the full menu? See all my SBA loans, compare a commercial term loan, or browse all my commercial real estate loans, including warehouse and industrial loans and retail and strip mall loans. Don’t Beg the Bank! Get funded instead.
Straight Answers Before You Apply
What are SBA 504 loans?
What can an SBA 504 loan be used for?
How much down payment does an SBA 504 loan need?
What are SBA 504 loan rates and terms?
Should I get a 504 or a 7(a)?
What does it cost to work with you?
SBA 504 by Industry
I match owner-occupied manufacturers to SBA 504 financing when the lower down payment fits, with conventional alternatives up to $100 million* when it does not. Find your industry below.
An SBA 504 Advisor Who Knows the Right CDC for Your Deal
I’m Kevin Kermeen, the nationwide commercial loan broker behind 75BizLoans.com, not a banker. A 504 runs through a Certified Development Company and a bank, so the whole game is pairing your project with the right two. I match your 504 to the CDC and bank partner built for your asset type and stay with you through closing. For the official program details, see the SBA 504 loan program page and the SBA’s list of Certified Development Companies.
Get Funded Instead.
Banks hand out umbrellas when the sun is shining, not when you’re weathering the storm. I match you to the right lender for SBA 504 loans so you don’t fight it alone … up to $5.5 million, a fixed rate for the long haul, as little as 10% down, and a same-day callback from a broker who knows which CDC says yes.
Loan amounts, rates, terms and down payments shown reflect SBA program parameters and typical CDC and lender practice, not guarantees. The maximum SBA 504 loan amount is $5.5 million on the SBA-backed CDC portion; manufacturing and certain energy projects may qualify for higher caps, and the bank first mortgage sits on top of the SBA cap so total project size can run higher. The CDC portion carries a fixed rate pegged to an increment above the 10-year U.S. Treasury and totals approximately 3% of the debt in built-in fees that may be financed; the bank first mortgage is priced separately. Terms are 10, 20 or 25 years. The standard structure is roughly 50% bank, 40% CDC and 10% borrower equity; startups and special-use properties typically require 15% to 20% down, set by CDC and lender practice rather than a fixed SBA figure. A 650 FICO is a typical lender floor, not an SBA requirement. SBA 504 loans are for eligible for-profit U.S. businesses with a tangible net worth under $20 million and average net income under $6.5 million; they cannot fund working capital, inventory, passive rental real estate or speculation, and a personal guarantee is generally required. The combined $10 million figure reflects an SBA rule effective July 4, 2026 allowing a qualified borrower to pair a 504 with a 7(a) loan; availability depends on SBA eligibility and lender underwriting. *No upfront fees refers to fees payable to 75BizLoans.com; I am compensated by the lender at closing. Some partner lenders may require a commitment fee or deposit upon your acceptance of their term sheet; any such fee is the lender’s, is disclosed before you commit, and is separate from any compensation to me. Final eligibility, rate, term and structure are determined by the SBA, the CDC and the lender. This is not a commitment to lend.