504 Project Structure

 

SOURCE

 PROJECT 
COSTS

LIEN

RATE

FUNDING LIMITS

REAL
 ESTATE 

EQUIPMENT

Bank

50%
$500,000

First  Market  No Limit 10 Yrs.
or
Longer
7 Yrs.
or
Longer

GSDC
(SBA 504)

40%
$400,000

 Second 
Fixed

Min: $50,000

Max: $5,000,000 and
$5,500,000 if mfg. company and/or energy policy goals

20 Yrs.
10 Yrs.
Borrower

10%
$100,000

         
TOTAL $1,000,000          
 

Owner equity required is 10%.
An extra 5% is required for either a start-up business (2 yrs in or less) or a single-purpose building.
An extra 10% is required for both a start-up business and a single-purpose building.