SBA 504 Loan Success Stories
Real-world examples of how businesses achieved growth with SBA 504 loans
Manufacturing Company Expansion
Project Overview
- Industry: Manufacturing
- Location: Midwest
- Project Cost: $2.5 million
- SBA 504 Loan Amount: $2 million
- Purpose: Facility purchase and equipment
Challenge
A growing manufacturing company needed to expand operations but faced challenges with traditional financing due to the large project size and specialized equipment needs.
Solution
The SBA 504 loan provided:
- 50% conventional bank financing: $1.25 million
- 40% CDC/SBA portion: $1 million
- 10% down payment: $250,000
Results
- Created 25 new jobs
- Increased production capacity by 200%
- Reduced operating costs by 30%
- Expanded market reach to new regions
Medical Practice Acquisition
Project Overview
- Industry: Healthcare
- Location: West Coast
- Project Cost: $1.8 million
- SBA 504 Loan Amount: $1.62 million
- Purpose: Medical office purchase
Challenge
A successful medical practice wanted to purchase their leased facility but needed to preserve working capital for equipment upgrades.
Solution
The SBA 504 loan structure included:
- 50% bank financing: $900,000
- 40% CDC/SBA portion: $720,000
- 10% down payment: $180,000
Results
- Reduced monthly payments compared to lease
- Built equity in real estate
- Expanded services with saved capital
- Added 10 new healthcare positions
Hotel Construction Project
Project Overview
- Industry: Hospitality
- Location: Southeast
- Project Cost: $4.5 million
- SBA 504 Loan Amount: $4.05 million
- Purpose: New hotel construction
Challenge
A hotel developer needed financing for new construction but traditional lenders required higher down payments due to industry risks.
Solution
The SBA 504 loan provided favorable terms:
- 50% bank financing: $2.25 million
- 40% CDC/SBA portion: $1.8 million
- 10% down payment: $450,000
Results
- Successfully completed construction
- Created 35 permanent jobs
- Achieved 75% occupancy in first year
- Generated positive cash flow within 18 months
Ready to Write Your Success Story?
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