SBA 504 Lending
Below-market, long-term fixed financing for owner-occupied real estate and major fixed assets, with as little as 10% down.
The SBA 504 program is structured differently from a 7(a) loan: a conventional lender funds roughly 50% of the project in a first-lien position, a Certified Development Company (CDC) funds up to 40% in a second-lien position at a below-market fixed rate, and the borrower puts down as little as 10%. That structure is what allows 504 borrowers to hold onto more working capital than a conventional loan would require, while still locking in long-term, fixed-rate financing on the CDC portion. It's most commonly used for owner-occupied real estate purchases, ground-up construction, or major equipment purchases — not for working capital or business acquisition, which is where a 7(a) loan fits better.
Based in San Rafael, we arrange SBA 504 financing for Bay Area business owners as well as clients nationwide.
Apply Now- Fixed-asset & owner-occupied real estate financing
- As little as 10% down
- Below-market, long-term fixed rate on the CDC portion
- Bank (~50%) + CDC (~40%) dual-lien structure
- CDC portion up to $5,500,000+ (higher for manufacturers/green projects)
- Not available for working capital or business acquisition
| Lending Area | Nationwide, with preferred programs for Western states |
|---|---|
| Loan Amount | $1,000,000 and up nationwide; $350,000 and up in California |
| Maximum LTV | Up to 80%, based on risk and in-place cash flow |
| Fixed Rates | Starting at — |
| Amortization | 30-year amortization standard |
| Recourse | Non-recourse options available |
| Prepayment | Ranges from none to yield maintenance or stepdown |
| Underwriting | Starting at a 1.15x debt service coverage ratio |
SBA 504 lending questions
Yes — we're based in San Rafael and regularly arrange SBA 504 financing for businesses throughout Marin County, San Francisco, and the greater Bay Area, alongside our nationwide lending programs.