SBA 504 Loan Calculator
Calculate payments for SBA 504 loans used to purchase commercial real estate or equipment. See the two-loan structure and total costs.
Common SBA 504 Real Estate Examples
See how SBA 504's two-loan structure works for typical commercial real estate purchases. Examples show the 50% bank loan, 40% SBA debenture, and 10% down payment breakdown.
$500,000 Commercial Property
Bank Loan (50%)
SBA Debenture (40%)
Your Investment (10%)
$1,000,000 Commercial Property
Bank Loan (50%)
SBA Debenture (40%)
Your Investment (10%)
$2,000,000 Commercial Property
Bank Loan (50%)
SBA Debenture (40%)
Your Investment (10%)
🏢 SBA 504 Structure Benefits
Lower Down Payment: Only 10% compared to 20-30% for conventional financing
Fixed SBA Rates: The SBA debenture portion has fixed rates for the entire term
Longer Terms: SBA portion can extend up to 25 years for lower payments
No Prepayment Penalty: Pay off the SBA portion early without fees
Project Details
Maximum: $5,500,000
50% of project
40% of project
SBA 504 Loan Benefits
Key Features
- • Up to 90% financing (10% down)
- • Fixed-rate SBA debenture portion
- • Long-term financing up to 25 years
- • No prepayment penalties on SBA portion
Eligible Uses
- • Commercial real estate purchase
- • Construction of owner-occupied buildings
- • Equipment and machinery
- • Renovation and improvements
SBA 504 Loan Structure
SBA 504 loans provide long-term, fixed-rate financing for commercial real estate and equipment purchases through a unique two-loan structure:
Loan Structure Breakdown
- Bank Loan (50%): First mortgage at market rates
- SBA Debenture (40%): Second mortgage at below-market rates
- Down Payment (10%): Your equity contribution
Key Features
- Maximum loan amount: $5.5 million
- Fixed rates on SBA portion
- Terms up to 25 years
- No prepayment penalties on SBA portion
Eligible Property Types
Real Estate
- • Office buildings
- • Warehouses and distribution centers
- • Manufacturing facilities
- • Retail and restaurant buildings
Equipment
- • Manufacturing equipment
- • Construction machinery
- • Medical equipment
- • Technology infrastructure
SBA 504 vs Traditional Financing
| Feature | SBA 504 | Traditional |
|---|---|---|
| Down Payment | 10-15% | 20-30% |
| Interest Rate | Blended rate, SBA portion fixed | Market rate, often variable |
| Loan Term | Up to 25 years | Typically 15-20 years |
| Prepayment | No penalty on SBA portion | Often penalties apply |
Ready for SBA 504 Financing?
SBA 504 loans are ideal for established businesses looking to purchase commercial real estate or equipment while preserving working capital.