SBA 504 Owner-User

U.S. citizen or U.S. national owners buying or building owner-user CRE.

• 50% bank + 40% SBA debenture + 10% equity (typical)
• Fixed-rate 20–25 year CDC second
• Combined 7(a)+504 up to $10 million (effective July 4, 2026)
• Same March 1, 2026 citizenship/residency gate as 7(a)

• Owner-user CRE acquisition
• Owner-user construction

How is SBA 504 structured?

Typical stack is 50% bank first + 40% SBA debenture through a Certified Development Company + 10% borrower equity. The debenture is fixed-rate 20 or 25 years. Special-use or start-up files can require more than 10% equity — that is overlay, not a web quote.

What's the difference between SBA 504 and 7(a)?

504 is for owner-user real estate and heavy equipment with a long fixed-rate CDC second. 7(a) is more flexible — real estate, working capital, equipment, or a business acquisition. For a pure owner-user real-estate buy over $1 million, 504 is usually the better stack. Confirm occupancy, equity injection, and citizenship at lock.

Can I combine a 504 with a 7(a)?

Yes, for eligible borrowers. SBA news 26-52 / Policy Notice 5000-879058 (May 18, 2026; effective July 4, 2026) lets a borrower stack 7(a) and 504 up to $10 million combined. Each program still has its own occupancy, equity, and size tests. Not an approval from this page.

Who can own the borrower in 2026?

Same gate as 7(a). SBA Procedural Notice 5000-876626 (effective March 1, 2026): 100% of direct and indirect owners must be U.S. citizens or U.S. nationals with principal residence in the United States, its territories, or possessions. Lawful Permanent Residents are ineligible persons under that notice.

How long does SBA 504 take to close?

Typically 60–90 days. CDC coordination on the debenture adds time. 7(a) or conventional commercial is usually faster if the file needs speed more than the fixed-rate second.