How it Works
One of the guaranteed loan programs of the U.S. Small Business Administration (SBA), the 504 loan provides long-term, fixed-rate financing to acquire fixed assets (such as real estate or equipment) for expansion or modernization. It is designed for small businesses requiring “brick and mortar” financing, and is delivered by CDCs (Certified Development Companies), which are private, non-profit corporations set up to contribute to the economic development of their communities.
California Lending Partners, an SBA Certified Development Company, can help you with financing your purchase of a building or major equipment for your small business.
The typical structure of a 504 loan is for a bank to provide a first mortgage of 50%, a certified development company such as California Lending Partners to provide 40% of the loan, and for the business owner to make a 10% down payment.