| Goal of program | Economic development and job creation | Capital access |
| Purpose | For real estate/equipment
No working capital on acquisitions
Working capital is allowed under SBA 504 debt refinance | Business purposes (equipment, working capital, business acquisition, real estate, etc.) |
| Loan size | Bank: Capped at 65% of total cost
CDC: Capped at $5M for conventional project and $5.5M for green projects
Multiple SBA 504 loan under Green projects is allowed | $5M for most projects and
$5.5M for manufacturing |
| Loan-to-value | Bank: minimum of 50%
CDC: maximum of 40% | Maximum of 90% |
| Debenture term | Bank: Variable or fixed rate, at least 7-year term for a 10-year CDC loan, and at least 10-year term for a 20-year CDC loan
CDC: fixed rate, 20 years for real estate, and 10 years for equipment | Variable or fixed rate
Term between 7 and 25 years depending on use of funds and applicable collateral |
| Lien position | Bank has exclusive first lien | Typically bank holds first lien with guarantee from SBA |
| Combination with USDA | Cannot be combined | Can be combined |
| Payment of other SBA loan | Cannot be used to pay 7a loan | Can be used to pay SBA 504 |
Call: 1-877-850-5130