What advantages does a 504 Loan offer my clients?

A low down payment to improve your client’s cash flow. They conserve valuable working capital and you have a stronger borrower.

A fixed-rate 504 loan to minimize the risk of future rate uncertainty.

A longer term to bring debt service in line with cash flow generated by a long-term asset.

What is the typical 504 Financing Structure?

Project Costs
Source
Lien
Funding Limits
Rate
Term Real Estate
Term Equipment
50%
Financial Instruction
1st
No Limit
Market
10 Yrs or longer
7 Yrs or longer
40%
CDCSW
2nd
Min: $50,000
Max: $5,500,000
$5,000,000 (Public Policy Projects)
$5,500,000 (Manufacturing & Energy Efficiency Projects)
Fixed
20 Yrs
10 Yrs
10%
Borrower