Fixed Rate · Commercial Real Estate · 10% Down · 25-Year Terms

SBA 504 Loans —
Fixed Rate. Long Term. Owner-Occupied.

The SBA 504 program offers the lowest fixed rates available for owner-occupied commercial real estate. With just 10% down and 25-year terms, it's the most powerful tool for business owners who want to own their building instead of renting.

Apply Now → Call 510-786-8739

How SBA 504 Works

The Two-Loan Structure

SBA 504 uses a unique two-loan structure that delivers lower rates than any conventional commercial program:

First Loan — Conventional Lender (50%)

A conventional bank or credit union provides 50% of the project cost. This loan typically has a 10-year fixed term with 25-year amortization.

Second Loan — SBA / CDC (40%)

A Certified Development Company (CDC) provides 40% backed by the SBA guarantee. This portion has a below-market FIXED rate — locked for 10 or 20 years.

Borrower Down Payment (10%)

Just 10% down for most projects. New businesses or special-use properties may require 15-20%. Much lower than conventional commercial's 25-35%.

Eligible Uses

What SBA 504 Finances

Purchase of owner-occupied commercial real estate

Construction of new commercial building

Renovation or expansion of existing facility

Purchase of major equipment with long useful life

Land and building acquisition combined

Refinance of existing commercial real estate (in some cases)

Key Requirement

The business must occupy at least 51% of the property (60% for new construction). SBA 504 is only for owner-occupied commercial properties — not investor/rental properties.

Common Questions

SBA 504 FAQs

What is the SBA 504 interest rate?

The SBA/CDC portion of a 504 loan has a below-market fixed rate tied to US Treasury rates. As of 2026, rates on the SBA portion are typically in the 5-7% range. The conventional first loan rate is negotiated separately with the bank.

How long does SBA 504 take to close?

SBA 504 typically takes 60-90 days. The CDC/SBA approval process adds time compared to 7(a). However, some conventional lenders can issue a commitment quickly — allowing you to move forward on real estate purchases while SBA processes.

Can I use SBA 504 to refinance existing debt?

Yes — in limited circumstances. The SBA 504 debt refinance program allows qualified businesses to refinance existing conventional commercial debt at the fixed SBA rate. Specific eligibility rules apply.

What is the maximum SBA 504 loan amount?

The SBA/CDC portion is capped at $5M for standard projects ($5.5M for manufacturers or energy-related projects). The conventional first loan has no SBA cap. Total project size can be $15-20M+.

SBA 504 vs SBA 7(a) — which is better?

504 is better when you primarily need commercial real estate financing and want the lowest possible fixed rate. 7(a) is better when you need flexibility to finance real estate, equipment, and working capital together, or when your project is a business acquisition.

Does the business need to be profitable to qualify?

The business must demonstrate ability to repay the loan. Startup businesses or those with recent losses may still qualify with strong projections and management experience. We help you present your financials in the most favorable light.

Ready to Own Your Commercial Property?

SBA 504 lets you buy instead of rent — with just 10% down and a fixed rate locked for up to 20 years. Let's structure your deal.