Small Business Administration (SBA) 504 Loans
As a U.S. Small Business Administration (SBA) preferred lender, with local bankers and support, we can help you navigate the application process for a Small Business Administration SBA 504(Opens in a new window) loan. This program provides long-term, fixed-rate financing for major fixed assets that promote business growth and job creation in the communities we serve.
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SBA 504 loan amounts
Loan Amounts
Loan amounts available up to $5.5 million per project, for up to three projects, not to exceed $16.5 million. -
sba loan bankers
Local Support
Work with a local banker to create a loan package specific to your business needs. -
SBA 504 loan amounts
SBA 504 Loan Rates
Interest rates can vary. Talk to a local banker.
We'll Help You Connect With the Right Banker
Complete the form below to contact a banker about your SBA 504 lending needs today. Once submitted, our bankers will reach out to you directly to set up a time to meet with you to discuss your individual business needs, or use our search tool to find a banker in your area.
Frequently Asked Questions About SBA 504 Loans
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Yes! An SBA 504 loan can be used for real estate improvements such as utility upgrades, parking lots, and even landscaping. You can also use these loans for modernization projects for existing buildings and building systems.
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Yes! You can use an SBA 504 loan to purchase fixed assets for your business like real-estate or buildings.
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Yes, personal guarantees are required from anyone who owns 20% or more of the borrowing business.
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To apply, contact a local TowneBank banker who can help guide you through the application process. This will include completing SBA forms and collecting pertinent information about your business as well as helping you to outline the intended use of your funds.
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Businesses that apply for an SBA 504 loan must meet the following requirements:
- Be a for-profit business operating in the United States or its territories
- Meet SBA small business size standards for your industry
- Prove that your business cannot get similar financing elsewhere
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To qualify, you must operate a for-profit business within the U.S. or its territories, have a net worth of less than $15 million, and have an average net income of less than $5 million after taxes for the preceding two years.
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Rates vary depending on your loan amount and other factors. Ask a banker about terms and rates.
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Repayment terms are typically 10-25 years; however, your TowneBank banker can help you determine what is the best fit for you and your business.
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An SBA 504 loan is a financing solution designed to ignite economic development. These loans are jointly provided by a Certified Development Company (CDC) and a bank like TowneBank, aiming to assist small businesses in acquiring major fixed assets such as real estate and equipment.
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The borrower's down payment can be as low as 10% of the total project cost, but it may be 15-20% for startups or special-use properties.
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Typically, you can borrow up to $5 million. However, for specific energy-efficient or manufacturing projects, the limit may increase.
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