Business Financing
SBA 504 Financing Explained
How long-term, fixed-asset financing may support owner-occupied commercial real estate and major equipment purchases.
By EZ Commercial Capital
Designed for qualifying fixed assets
SBA 504 financing commonly combines a bank or lending institution, a certified development company and a borrower contribution. It may support eligible owner-occupied commercial real estate, construction, improvements and major equipment.
The operating business, ownership, occupancy, project costs and intended use of funds must satisfy program requirements.
Prepare for a complete review
The structure can offer long-term financing, but it is not a shortcut around underwriting. Historical cash flow, projections when applicable, guarantor information, project costs and property details remain important.
Early preparation helps determine whether SBA 504, SBA 7(a) or conventional financing better supports the complete business plan.