SBA 504 Commercial Loans
The SBA 504 loan program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. Borrowers must apply through a participating lender institution. Find your SBA Lender on CNF Exchange.
Learn more about SBA Commercial Loans.
One of the goals of the U.S. Small Business Administration (SBA) is to foster economic development in target areas of urban and rural communities. The SBA 504 commercial loan program is an important tool in achieving this goal. This program provides long-term financing for small businesses to allow them to acquire major fixed assets within the targeted community. These assets can be used for expansions, renovations or other applications within the small business framework. Funding for SBA 504 commercial loans comes from a variety of sources that include SBA-approved Certified Development Company (CDC) organizations. These nonprofit corporations are designed specifically to provide funding for commercial and small business growth in depressed or underdeveloped areas of the community. In order to qualify for a commercial loan for SBA 504 development, small business owners must provide at least 10 percent of the cost of the project directly. The remaining 90 percent is divided between guaranteed funding from the CDC partner at 40 percent and a private sector commercial lending institution that contributes up to 50 percent of the project costs. This arrangement allows a greater degree of investment in the local community and ensures the availability of commercial loans for SBA 504 participants.
Small business owners can often obtain SBA loans through the CNF Exchange platform, which allows borrowers to submit their funding requests for free online. This can streamline the SBA 504 commercial loan application process and ensure the most positive results for small businesses seeking government assistance in financing their ongoing operations and long-term expansion plans.
If you're interested in obtaining an SBA 7a business loan instead, please reference the respective page or contact CNF Exchange for more information.