SBA 504 terms are commonly 10, 20, or 25 years, depending on the project, asset type, and loan structure.
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.
Borrowers should compare the total monthly payment and blended cost of the bank and CDC portions together.
SBA terms often reach 10 years for working capital or acquisitions and up to 25 years for owner-occupied real estate.
SBA 7(a) terms are commonly up to 10 years for working capital or acquisitions and up to 25 years for real estate.
SBA monthly payments depend on loan amount, rate, term, and amortization, with longer terms usually lowering payments.
SBA amortization spreads principal and interest over time, often over 10 to 25 years depending on the loan purpose.
Have an SBA loan scenario to review? Market Direct Capital can help evaluate structure, eligibility, and next steps.
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