Commercial
SBA
SBA 504 Owner-User
Fixed-rate SBA loan for owner-user commercial real estate acquisition or construction. 50/40/10 structure.
Available throughout Southern California through Francisco Williams, CCIM, NMLS #1858674.
Ideal borrower
Small businesses buying or building owner-user CRE >$1M.
Program highlights
- 50% bank loan + 40% SBA debenture + 10% borrower equity
- Fixed rates 20–25 years on debenture
- Green energy or manufacturing projects get enhanced terms
Typical uses
- Owner-user CRE acquisition
- Owner-user construction
Frequently asked questions
- How is SBA 504 structured?
- 50% bank loan + 40% SBA debenture (funded through a Certified Development Company) + 10% borrower equity. The debenture portion is fixed-rate 20 or 25 years — the longest fixed-rate commercial real estate financing commonly available. Borrower equity can be as low as 10% for established businesses.
- What's the difference between SBA 504 and 7(a)?
- 504 is specifically for owner-user real estate and heavy equipment with long fixed-rate terms on the debenture. 7(a) is more flexible — can fund real estate, working capital, equipment, business acquisition — with shorter terms and variable rates. For pure owner-user real estate acquisitions over $1M, 504 usually wins.
- How long does SBA 504 take to close?
- Typically 60–90 days. The CDC coordination on the debenture adds complexity but produces better long-term pricing. For faster closings on commercial real estate, 7(a) or conventional commercial are usually better paths.
Program details shown are representative guidelines and subject to individual lender overlays and CFPB / agency requirements. Rates shown are illustrative and subject to change without notice. Actual rate, APR, and terms will depend on creditworthiness, loan-to-value, property type, occupancy, loan amount, loan program, and other factors. Not all applicants will qualify.