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SBA 504 Loan Benefits

Discover why SBA 504 loans are the preferred choice for small business real estate and equipment financing

Core Benefits of SBA 504 Loans

Low Down Payment

SBA 504 loans typically require only 10% down payment, compared to 20-30% with conventional commercial loans. This lower requirement helps preserve your working capital for business operations.

Fixed Interest Rates

The CDC portion of SBA 504 loans offers fixed rates for the entire term, providing predictable payments and protection against future rate increases.

Long Repayment Terms

With terms up to 25 years for real estate and 10 years for equipment, SBA 504 loans offer longer repayment periods than most conventional financing options.

Below-Market Rates

SBA 504 loans typically offer interest rates below market rates, making them an attractive option for long-term fixed asset financing.

Additional SBA 504 Loan Advantages

Real Estate Ownership Benefits

SBA 504 loans are particularly advantageous for real estate purchases:

  • Build equity in your commercial property instead of paying rent
  • Lock in occupancy costs for the long term
  • Potential tax benefits from property ownership
  • Option to lease excess space for additional income

Equipment Financing Advantages

For major equipment purchases, SBA 504 loans offer:

  • Up to 90% financing for new equipment
  • Fixed rates for the entire term
  • Longer terms than typical equipment loans
  • Ability to finance installation and soft costs

Special Program Benefits

Green Energy Benefits

Projects that include energy efficiency improvements may qualify for:

  • Higher loan amounts
  • Reduced fees
  • Special interest rates
  • Additional CDC support

Job Creation Benefits

Businesses that create or retain jobs may receive:

  • Priority processing
  • Reduced equity requirements
  • Additional support services

Ready to Explore SBA 504 Loan Options?

Use our SBA 504 loan calculator to estimate payments and see how these benefits can work for your business.