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.