SBA 504 Structure
Structure:
50% Bank – First mortgage/lien
40% SBA 504 – Second mortgage/lien
10%- Borrower Equity (cash, subordinated debt, equity in real estate)
Funding Limits:
Bank: No Limit
GSDC/SBA 504: Min: $50,000
Max: $5,000,000 and $5,500,000 if mfg. company and/or energy policy goals
Example:
| Bank | GSDC/SBA 504 | Borrower | Total | |
|---|---|---|---|---|
| Loan Amount | $500,000 | $400,000 | $100,000 | $1,000,000 |
| % of Project | 50% | 40% | 10% | |
| Term/Amortization | 10/20 | 20/20 | Equity | |
| Interest Rate | MARKET | FIXED | ||
| Collateral | First Lien | Second Lien | ||
| Real Estate | 10 YRS | 20/25 YRS | ||
| Equipment | 7 YRS | 10 YRS |
* 10% owner equity required.
* Start-Up Business or Special Purpose Building requires 15% Borrower Equity injection.
*Start-Up Business and Special Purpose Building requires 20% Borrower Equity injection.
Bank
GSDC
Borrower
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May 2026 SBA 504 Interest Rates
(For loans authorized on or after 10/1/25.)
6.181%
25-Year Term
6.200%
20-Year Term
5.846%
10-Year Term