SBA 504 Loans

One story commercial building. Sandy Spring Bank SBA.

Finance Your Long-Term Goals 

Small Business Administration (SBA) loans may be used for a variety of purposes, such as working capital, equipment and inventory or construction, and feature lower down payments with longer repayment terms. 

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Advantages of an SBA 504 Loan

The SBA 504 loan leverages co-lender financing and features longer terms and fixed rates. SBA 504 loans are designed to facilitate purchase of assets like equipment, commercial real estate or making renovations. 

To use for:

  • Purchase or refinance of owner-occupied real estate, including construction1 
  • Purchase or refinance of heavy equipment

Who's Eligible?

For-profit companies that meet the SBA size specifications, two-year net worth of $15 million or less and with after tax profits of less than $5 million. 

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How it works 

There are three financing components to an SBA 504 loan.

  • The Bank covers up to 50% of the project cost
  • Certified Development Company (CDC) covers up to 40%
  • Business covers a minimum of 10% of the total project cost

If you need to finance long-life machinery or equipment or want to finance certain capital improvements or construction, the SBA 504 loan may be the solution you've been looking for.

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  • Disclosure

    SBA financing is subject to approval through the SBA 504 and SBA 7(a) programs. Loan terms, collateral and documentation requirements apply and are subject to SBA guidelines. Actual amortization, rate, loan amounts and extension of credit are subject to necessary credit approval. Sandy Spring Bank's credit standards and documentation requirements apply. SBA 504, SBA 7(a) or SBA Express financing up to 90% of purchase price. Some restrictions may apply.

    1Owner-occupied commercial real estate status will be determined in underwriting and requires occupancy by the borrower/guarantor. Please note SBA guidelines require at least 51% occupancy to be considered owner-occupied. Real estate financing options are subject to approval and product availability is subject to change.