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SBA 504 Loans

Explore how an SBA 504 loan may be right for you.
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What is an SBA 504 Loan?

The SBA 504 loan program is for businesses who want to finance bigger projects and take advantage of low down-payments and longer repayment terms as compared to conventional financing.  The SBA 504 loan program features higher maximum loan amounts than other SBA programs, and is best used to finance the purchase of major fixed assets.

The SBA 504 Loan is a partnership program between a business lender like State Bank of Southern Utah and a SBA Certified Development Company (CDC).  Typically, State Bank of Southern Utah will provide 50% of the project amount, the CDC will provide 40% and the borrower will provide 10% as a down payment. Contact one of our experienced Loan Officers to see if a SBA 504 loan makes sense for your business.

 

Use of Proceeds

  • Minimum opening deposit of $10.
  • No OD/NSF fee are charged the first two occurrences each month.
  • Max OD/NSF fee = $25 per day/$100 per month maximum .

 

Requirements

SBA Loans can be used to finance a wide variety of business needs but are typically used for the following:

  • Purchasing Real Estate
  • Constructing a building
  • Renovating and modernizing existing facilities
  • Improving infrastructure
  • Purchasing heavy machinery and equipment
  • Refinancing debt (some restrictions apply)

 

Key Terms and Benefits

SBA 504 Loan Program
  • Loan Amounts: Up to $10,000,000
  • Structure: Lender 50%, CDC up to 40%, Borrower up to 20%
  • Down Payment: May be as little as 10% of the project cost plus an additional 5% for a new business and/or 5% for special use property
  • Maximum Term: 10 Years for Equipment 20 Years for Commercial Real Estate
  • Competitive Interest Rates: Interest rates are fixed
  • Real Estate: Must be primarily owner occupied
  • Equipment: Must have a useful life greater than 10 years
  • Ineligible uses: Cannot be used for working capital. Cannot be used for inventory.

Other Business Loans:  Agriculture Loans  |  Commercial Construction  |  Business Real Estate  |  Equipment & Vehicle  |  Business Term Loans  |  Business Line of Credit