The following are examples of SBA 504 loan project costs and loan structures.

SBA 504 Project Costs (Example A):

Acquisition of Real Estate

$800,000

Renovations

$100,000

Machinery

$50,000

Soft and Closing Costs

$50,000

Total Project Cost

$1,000,000

SBA 504 Project Costs (Example B):

Land

$250,000

Construction

$600,000

Soft Costs

$125,000

Closing Costs

$   25,000

Total Project Cost

$1,000,000

SBA 504 Loan Structure Example:

1st Mtg. (50%)

$500,000

2nd Mtg. (40%)

$400,000

Equity

$100,000

Total Project Cost

$1,000,000

50% of the Total Project Cost
Conventional Loan at Market Rates

40% of the Total Project Cost
Below Market, Fixed Rate Bond with an SBA Guarantee

10% Total Project Cost
Equity Injection/Down Payment

Up to 25-year amortization.

20 year amortization.

Cash.

No balloons, calls or covenants.

No balloons, calls or covenants.

Can use equity in land if already purchased.

Option of fixed or variable interest rate.

Fixed interest rate at below market rate, fixed for the entire 20 Years.

Can use prepaid soft costs, like architectural or engineering fees.

Assumable loan.

Assumable loan.

*15% equity requirement on special use properties or start-up businesses; 20% for special use properties and start-up businesses.