Loan Structure
An Example of a $1,000,000 SBA 504 Real Estate loan is provided below:
| Bank Loan | Capital Funding SBA (504 loan) | Borrower Down Payment | |
| % of project | 50% | 40% | 10% |
| Security | 1st Lien | 2nd Lien | |
| $ Amount | $500,000 | $400,000 | $100,000 |
| Interest Rate | Market Rate | Below Market Fixed Rate | |
| Term | 10-30 years | 10, 20 or 25 years | |
| Amortization | 20-30 years | 25 years |
Bank Loan
Bank or non-bank lender - provides 50% of the project financing with the interest rate being fixed or variable.
SBA 504 Loan
Loan may finance up to 40% or $5.0 million. The interest rate will be Fixed for the term of 10, 20 or 25 years. Manufacturing companies and new Energy Efficient Buildings may finance up to 40% or $5.5 million.
Borrower
Down Payment is provided by the Business Owner. A down payment of at least 10% of the total project cost is required in cash or equity.