SBA Q&A

What Are SBA 504 Loan Terms?

SBA 504 terms are commonly 10, 20, or 25 years, depending on the project, asset type, and loan structure.

What Are SBA 504 Loan Terms?

SBA 504 loan terms are commonly long-term and are designed for owner-occupied commercial real estate, construction, expansion, and major fixed assets.

The CDC/SBA portion of a 504 loan is typically structured with a fixed rate and a 10, 20, or 25-year term, depending on the project and asset. The bank first mortgage may have its own rate, term, and reset structure.

  • Real estate projects commonly use 20 or 25-year terms.
  • Major equipment may use a shorter 10-year structure.
  • CDC/SBA portion is typically long-term and fixed.
  • Bank portion may have a separate term and rate structure.
  • Blended payment should be reviewed across the full project financing.

Borrowers should compare the total monthly payment and blended cost of the bank and CDC portions together.

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More Terms and Payments Questions

What Are SBA Loan Terms?

SBA terms often reach 10 years for working capital or acquisitions and up to 25 years for owner-occupied real estate.

What Are SBA 7(a) Loan Terms?

SBA 7(a) terms are commonly up to 10 years for working capital or acquisitions and up to 25 years for real estate.

How Much Are SBA Loan Monthly Payments?

SBA monthly payments depend on loan amount, rate, term, and amortization, with longer terms usually lowering payments.

How Does SBA Loan Amortization Work?

SBA amortization spreads principal and interest over time, often over 10 to 25 years depending on the loan purpose.

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