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SBA 504 Loan Program
Purchase or Build Owner Occupied Business
Real Estate
Low Fixed or Variable Rate Financing

Typical 504 Loan Structure
| First Trust Deed - Bank/Ins.
Co. |
50% |
| Second Trust Deed - SBA
504 |
40% |
| Owner's Equity/Down payment |
10% |
| Total Project Cost |
100% |
Requirements
- 10% Equity Injection (15% For New Businesses and Special Purpose
Buildings)
- Borrower/ Business Must Occupy 51% of Existing Building or 67% of
New Building
- Business Must Create or Retain One Full-Time Job for Every $35,000
of Second Trust Deed Amount
Acceptable Use of Funds
- Land Acquisition
- Construction of Buildings
- Purchase of Existing Buildings
- Renovation, Restoration or Additions
- Purchase of Equipment (If Part of Real Property)
- Interim Loan Costs, Closing Costs, Architectural & Engineering Fees,
Title Insurance

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