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How to Apply for an SBA 504 Loan

A comprehensive guide to the SBA 504 loan application process and requirements

SBA 504 Loan Application Steps

Step 1: Initial Preparation

Before starting your SBA 504 loan application, gather these essential documents:

  • Business and personal tax returns (last 3 years)
  • Financial statements and projections
  • Business plan and history
  • Personal financial statement
  • Real estate information (if applicable)

Step 2: Find a CDC and Lender

The SBA 504 loan application requires working with:

  • Certified Development Company (CDC)
  • Participating bank or credit union
  • SBA district office (optional consultation)

Step 3: Submit Application Package

Work with your CDC to prepare and submit:

  • SBA Form 1244 (Application)
  • Business organization documents
  • Collateral documentation
  • Environmental studies (if required)

Step 4: Approval Process

The approval process typically involves:

  • CDC underwriting review
  • Bank underwriting review
  • SBA approval
  • Commitment letters issuance

SBA 504 Loan Application Timeline

  • Initial Application Preparation: 2-3 weeks
  • CDC Review: 2-4 weeks
  • Bank Review: 3-4 weeks
  • SBA Approval: 5-8 weeks
  • Closing Process: 2-3 weeks

Total timeline: Typically 3-6 months from application to funding

Required Documentation

Business Documents

  • Business tax returns (3 years)
  • Financial statements
  • Business licenses
  • Articles of incorporation
  • Lease agreements
  • Business plan

Personal Documents

  • Personal tax returns (3 years)
  • Personal financial statement
  • Resume or CV
  • Personal identification
  • Credit report authorization

Tips for a Successful Application

  • Start gathering documents early in the process
  • Maintain open communication with your CDC and bank
  • Be prepared to provide additional documentation if requested
  • Consider using professional assistance for complex applications
  • Keep copies of all submitted documents

Ready to Start Your SBA 504 Loan Application?

Use our calculator to estimate your loan payments before beginning the application process.