Enjoy a fixed interest rate on real estate or equipment purchases with an SBA 504 loan.

The SBA 504 is also called a CDC loan, because it pairs a Community Development Corporation (CDC) with a lender and, together, they finance 90% of the loan amount. The borrower pays the remaining 10% in the form of a down payment. No collateral is required.

Borrowers can apply for up to $5.5 million with terms of up to 25 years. As with the SBA 7(a), loan fees are applicable, in addition to the interest rate. These loan fees range from 3%- 3.75%.

The main advantage of the SBA 504 is the fixed interest rate, which is generally lower than those of the SBA 7(a). The fixed interest rate ensures consistent monthly payment requirements over the full term of the loan.

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