SBA 504 Loan Structure

Low Down Payments: Qualified companies may be able to secure funding with as little as 10% down, so you can keep growing your business with cash left on hand. (Startups and single-purpose facilities may need a larger down payment to qualify.)

SBA 504 Loan Rates: In general, the SBA 504 loan rates will vary depending on when the loan is funded but remains fixed for the entire life of the loan. To start the process of calculating this rate, the 10-Year Treasury Bill rate at the time is used.

In other words, to estimate current SBA 504 loan rates, you must first look at current 10-Year Treasury Bill rates. Then, the interest rate that investors earn must also be considered.

  • Below Market Fixed Rates: The SBA 504 loan offers rates that are set for the duration of the loan, without balloons later. The rates are also set lower than standard market rates and are amortized over 20 to 25 years so that borrowing for development is easy to budget.

No Additional Collateral: While some loans require that you pledge personal assets, such as your home or vehicle, the SBA 504 loan is secured by your purchase.

Can Include Closing Costs and Fees: As with most loans, there are closing costs and other “soft fees,” such as insurance and appraisals, that are necessary in order to process the loan and receive funding, but they can be rolled into the loan, so you can keep more cash on hand for daily needs.

SBA 504 Loan Requirements

If your commercial property is at least 51% owner-occupied, small-business loans from AVANA Capital can help you acquire, renovate, or build commercial real estate properties.

The following are the SBA 504 loan requirements that you need to meet for your loan to be considered:

  • Your business is for profit.
  • You do business in the United States.
  • Your business net-worth is under $15 million.
  • Your business is not engaged in certain investments, such as rental real estate.
  • Your business does not have funds from other sources.
  • Your last two years of income after taxes are under $5 million.
  • Your company shows a good credit history that indicates you can repay your loan on time.

In general, SBA 504 loans may also be used to purchase heavy equipment that is necessary to keep your operation running or to boost productivity.

You’ll only need 10% – 20% of the total cost of your project as a down payment. Additional funding to cover the remaining balance is typically broken into two lien loans.

The first-lien loan covers 50% of the total cost, while the second lien loan, which is secured by the SBA, will cover the rest.

The team at AVANA can deliver your pre-approval within 24 hours, with closing in as little as 45-60 days.

We offer very competitive rates, and your loan can be paid off over 20 or 30 years, making it easy to grow your company and maintain more working capital.

Transaction Categories

  • Acquisition Financing
  • Opportunistic or Auction Purchases
  • Partner Buyouts and Repositioning
  • 1031 Exchange Purchases
  • Expansion and Renovation
  • Refinance and Protective Advances

Eligible Property Types

SBA 504 Loan Calculator

Use AVANA Capital’s simple SBA 504 Loan Calculator to explore SBA 504 financing options.


The information provided by this SBA 504 loan calculator is intended for illustrative purposes only. AVANA Capital shall be under no obligation to fund any loan to the borrower unless and until it is satisfied with its due diligence review in its sole judgment and formal loan documents prepared by AVANA's counsel are executed and delivered.

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