SBA CDC/504 Loans

SBA CDC/504 Loans Guide

The SBA CDC/504 loan provides long term fixed rate financing for major fixed assets that promote growth and job creation through Certified Development Companies that are regulated by the U.S. Small Business Administration. The CDC portion can reach five point five million and typical project structure is fifty percent bank forty percent CDC and ten percent borrower equity. Common uses are owner occupied real estate and large equipment rather than working capital.

Eligibility often requires the operating company to occupy at least fifty one percent of an existing building or sixty one percent of new construction and funds cannot be used for pure working capital. Effective SBA 504 loan rates in twenty twenty five have centered near the low sixes on ten to twenty five year debentures with monthly updates set by market pricing. SBA CDC lenders follow current program notices and funding calendars.

Key Benefits

Predictable monthly payments, fixed

Lower cost than short-term funding

Terms matched to asset cash flows

Supports expansion, refinance, capex

Works with SBA and bank partners

#Who Qualifies

How SBA 504 Works

A typical SBA 504 loan pairs one senior lender at about fifty percent of cost with a CDC debenture at about forty percent and borrower equity at about ten percent. GBFSI builds lender ready files and coordinates the CDC process from application through debenture sale and funding. Rates on the CDC portion are fixed for ten twenty or twenty five years. After closing, proceeds must match the approved use such as purchase construction renovation or eligible refinance under program rules.

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#Approval Path

Who Is Eligible

Best for for profit U.S. firms seeking owner occupied property or large equipment. The operating company usually occupies fifty one percent of an existing building or sixty one percent of a new build, while an eligible passive company structure is permitted. Projects should support economic development and show repayment ability. Working capital and most inventory are not eligible uses, though certain debt refinance paths may qualify under program guidance. GBFSI maps your case to fit.

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# Why GBFSi Wins

Why Choose GBFSI

One secure application gives access to SBA CDC/504 loan partners nationwide. GBFSI aligns bank and CDC roles, models DSCR and equity, and manages valuation third parties title and closing so timelines stay predictable. We track current SBA 504 Loan rates and funding calendars, prepare authorization conditions, and guide you through the post close servicing setup. When appropriate we compare 504 to seven a or conventional routes so you can select the best fit with confidence.