SBA 504 loan

• Certified Development Companies (CDCs) portion is a long-term fully amortizing loan
• Expansion of the business based on current and/or projected cash flow
• Low down payment

• Variable and fixed-rate options available
• Speak to an SBA Banker about fees associated with SBA loans

Borrower contribution: typically 10% to 20% of total project costs

This loan structure includes Regions Bank, a CDC-SBA partner and the borrower.

• Regions permanent loan portion is dependent on the total project size
• SBA guaranteed maximum loan amount up to $5.5 million
• Borrower contribution minimum of 10% of the project

Regions

• Equipment: 7-year loan term minimum, with amortization of either 10, 20 or 25 years based on remaining useful life of the asset
• Real estate: 10-year loan term minimum, with amortization of either 10, 20 or 25 years based on remaining useful life of the asset

CDC

• Equipment: 10, 20 or 25 years, fully amortizing, based on remaining useful life of the asset
• Real estate: 10, 20 or 25 years, fully amortizing, based on remaining useful life of the asset

An SBA 504 loan provides financing for long-term fixed assets that help create jobs and promote business growth. Learn more about SBA 504 loans by visiting sba.gov.

An SBA 504 loan typically follows a 50, 40, 10 structure where 50% of the loan comes from the bank, 40% from a CDC and 10% from the small business owner.

• Land purchase and development
• Commercial real estate
• New construction
• Expansion or renovation of current buildings
• Equipment that can be used for longer than 10 years
• Debt refinance
• Fixed assets from acquiring a business

The borrower’s responsibilities include personal and business tax returns, financial statements and additional business forms and documentation based on the request.