SBA Loan Financing
504 Flow Chart

SBA Loan Financing
504 Flow Chart

Purchase Price:$3,250,000-
Down Payment:$325,00010%
Bank Loan:$1,625,00050%
CDC 504 Debenture:$1,300,00040%
Total Project Costs:$3,250,000100%

Loan Structure:Bank/1stSBA 504/2ndTotal Financing
Loan Amount:$1,625,000$1,300,000$2,925,000
Interest Rate:6.36%6.15%-
Points/SBA Guarantee:1.00%2.15%3.15%
Amortization:25 years20 years-
Total Fees:$16,250$27,950$44,200
Total Loan Amount:$1,625,000$1,300,000$2,925,000
Monthly Payment:$10,830$9,426$20,256
Estimated Owner Injection:--$341,250



  • Will not finance non-profits.

Certified Development Company (CDC):

  • CDC processes, approves, closes and services the SBA loans.
  • The CDC is the direct lender for the SBA 504 loan program
Bank 1st:
  • Interest rate will vary from lender to lender.
  • Loan points will vary from lender to lender.
SBA 504 2nd:
  • 504 interest rate differs from the 1st TD.
  • 504 guarantee fee is amortized into the loan.
  • Bridge loan is put in place only until a permanent debenture on the 2nd TD is issued...approximately 30-60 days.


RETURN TO SBA LOANS from sba loan financing flow chart