Loan programs / Government-backed
SBA 504 Loans
Long-term, fixed-rate financing for the buildings and major equipment your business uses, with a down payment as low as 10%.
SBA portion
Up to $5 million, or $5.5 million for manufacturers and certain eligible projects
Terms
10, 20 or 25 years, fully amortizing
Down payment
As little as 10%; often 15–20% for startups and special-purpose property
Structure
About 50% bank loan, 40% SBA-backed CDC loan, 10% from you
Who it’s for
A good fit if you are…
- Businesses that will occupy at least 51% of an existing building, or 60% of a new one
- Owners who want a fixed rate on long-lived assets
- Growing companies that would rather keep cash in the business than make a large down payment
Common uses
What the funds can cover
- Buying an owner-occupied building
- Ground-up construction or major renovation
- Heavy equipment and machinery with a long useful life
- Refinancing eligible fixed-asset debt
Figures above are typical ranges, not quotes. Your actual terms depend on the lender and your business.
What to expect
How it works with Benchmark
- Project review. We confirm occupancy, eligibility and the project budget.
- Bank and CDC match. We pair your project with a bank for the first loan and a Certified Development Company (CDC) for the SBA portion.
- Approvals. The bank approves its loan and the CDC obtains SBA approval for the debenture.
- Closing. The bank funds the project at closing. The SBA portion funds later through a debenture sale, with the bank’s interim loan bridging the gap.
Documents
What you’ll typically need
Your advisor will send a checklist tailored to your request and a secure upload link. Please don’t email tax returns or IDs.
- SBA Form 1919 and SBA Form 1244
- Business and personal tax returns, last 3 years
- Interim financial statements
- Project cost breakdown
- Purchase contract or construction bids
- Business plan and projections
- Resumes of owners and key managers
- Third-party reports we coordinate: appraisal and environmental review
Questions
Common questions
What is a CDC?
A Certified Development Company is a nonprofit lender licensed by the SBA to make the 504 portion of the loan. We work with CDCs nationwide.
Can I lease out part of the building?
Yes. You can lease space you don’t occupy, as long as your business meets the occupancy minimum: 51% for an existing building or 60% for new construction.
504 or 7(a)?
504 is usually the better fit for real estate and major equipment because the SBA portion carries a long fixed rate. 7(a) is more flexible when the loan also covers working capital or a business purchase. We’ll compare both for you.
Next step
See if SBA 504 is the right fit
One short application. An advisor will review it, recommend the best program, even if it isn’t this one, and walk you through what comes next.
Benchmark Commercial Lending arranges commercial financing through a network of third-party lenders and funders and may also lend directly. All financing is subject to approval. Rates, terms, amounts and requirements vary by program, provider and borrower qualifications and can change. Program details on this page are general information, not an offer or commitment to lend. Financing is for business purposes only.