SBA 504 loan guide
SBA 504 loans for major fixed assets
The SBA 504 program is designed to help eligible small businesses finance owner-occupied commercial real estate, construction, improvements, and major equipment.
Lendstra is not a lender. Financing is offered by third-party lenders and is subject to underwriting, approval, and program requirements.
A clearer place to start
A typical 504 project involves a participating lender and a Certified Development Company. The final structure, borrower contribution, and project requirements depend on the transaction and program rules.
- Focused on eligible long-term fixed assets
- Commonly considered for owner-occupied property
- Delivered with a Certified Development Company
Compare paths
Projects that may fit an SBA 504 structure
SBA 504 is purpose-specific. If the request includes substantial working capital or a business acquisition, another program may be a better starting point.
Owner-occupied real estate
Purchase, construct, renovate, or expand eligible property used by the operating business.
Learn moreCommercial real estate loans
Compare SBA 504 with other commercial property financing paths.
Learn moreSpecial-use real estate
Explore financing factors for properties built around a specific business function.
Learn moreEquipment financing
Finance eligible long-lived machinery and equipment as a fixed-asset project.
Learn moreSBA 7(a) loans
Consider the more flexible SBA program when the request includes broader eligible uses.
Learn moreCommercial loans
Compare SBA-backed and conventional financing for major business assets.
Learn moreCommon goals
SBA 504 may support eligible
The project should center on assets intended for long-term use in the business rather than passive investment or short-term operating needs.
Occupancy, job-impact or public-policy goals, asset useful life, appraisal, environmental review, borrower contribution, and other program requirements may apply.
- Property purchases
- Ground-up construction
- Building expansions
- Facility renovations
- Land and site improvements
- Major machinery
- Long-lived equipment
- Related eligible project costs
What happens next
One starting point, then the right route
Tell us what you need
Share your financing goal, desired amount, and a few details about the business.
Get routed to the right path
The application flow uses your answers to direct you toward an appropriate next step.
Review available options
If there may be a fit, a financing specialist or lending partner can explain the requirements.
What is an SBA 504 loan?+
SBA 504 is a financing program for eligible major fixed assets. A typical project combines financing from a participating lender with a loan arranged through a Certified Development Company, subject to the borrower's contribution and program rules.
Can SBA 504 be used for working capital?+
SBA 504 is generally focused on eligible fixed assets rather than working capital. If the project requires working capital, inventory, goodwill, or an acquisition component, SBA 7(a) or another financing path may deserve consideration.
Can SBA 504 finance an investment property?+
The program is intended for eligible owner-occupied business property, not passive real estate investment. Occupancy and project rules apply and should be reviewed for the specific transaction.
Does every borrower make the same contribution?+
No. The required contribution can vary based on program rules and factors such as the business, property, project, or whether it is considered a startup or special-purpose transaction. The financing team must size the actual project.
What third-party reports might be required?+
Depending on the project, lenders may require an appraisal, environmental review, title work, construction documentation, equipment valuations, insurance, and other reports needed to underwrite and close the transaction.
Not sure which loan fits?
That is what the application path is for. Start with your goal and it will direct you to the most relevant next step.