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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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