Small Business Administration 504 Loan Program

The SBA 504 Loan Program is designed to help growing businesses get financing so to acquire long-term fixed assets such as land, building, machinery and equipment. Typically, a borrower is required to make a 10 percent down payment on a Small Business Administration loan. Cen Cal will finance no more than 40 percent of the project cost and a third-party lender or bank finances the remaining 50 percent of the loan.

These loans can also include the construction, modernizing, renovation or restoring facilities. The SBA requires that the assets purchased with this loan product must be used principally by your business and that they will enable you to create or retain jobs.
 

Why 504?

The 504 Loan Program gives established small business owners access to low-cost, fixed rate, long term financing that is typically enjoyed by much larger businesses.

Usually, a 504 Loan will minimize your down payment and maximize the term of your loan, all at a low, fixed interest rate, which is often below market interest rates.

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