SBA CDC/504 PROGRAM - Advance Capital
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SBA CDC/504 Program

This program is designed for the acquisition of a business with real estate or for the acquisition of real estate by a business.

Program Features:
CDC/504 SBA loans fees can sometimes be financed with the loan. Also, be aware that you’ll need to put around 10% of your purchase down to secure 504 SBA financing.  The 504 loan program involves two individual loans—one from a bank (which is 50% of the loan) and one facilitated by a Certified Development Corporation (which is usually 40% of the loan). The latter gets grouped together when all CDCs pool their projects, and through underwriters, auction the pool to investors. SBA 504 loans are made available through Certified Development Companies (CDCs), SBA’s community based partners for providing 504 Loans. A Certified Development Company (CDC) is a nonprofit corporation that promotes economic development within its community through 504 Loans. CDCs are certified and regulated by the SBA, and work with SBA and participating lenders to provide financing to small businesses, which in turn, accomplishes the goal of community economic development. There are over 260 CDCs nationwide, each having a defined area of operation which covers a specific geographic area.

Interest Rate:
SBA 504 loan rates are pegged to the US ten-year treasury bill rate and therefore are significantly lower then Section 7(A) loans. Currently, Section 504 loan rates range from 4.32% to 4.68%.

The loan is amortized monthly over a period of 10 and 25 years, with no prepayment penalty.