More than a 504


Equipment 10-year Fixed


Real Estate 20-year Fixed


Real Estate 25-year Fixed

504 Loans

What are SBA 504 loans?

The Small Business Administration 504 Loan Program is a long-term financing tool that promotes economic development within a community. The SBA 504 Program provides small businesses with long-term, fixed-rate financing to acquire major fixed assets such as real estate or machinery and equipment for expansion or renovation. The small business is able to obtain up to 90% financing on these assets. Typically, the financing structure is as follows:



Source % of Project Lien Position Interest Rate & Term Maximum Loan
Bank 50% 1st Market No maximum
CDC New England 40% 2nd 20 years fixed Real Estate or 10 years fixed Equipment $5,000,000 ($5,500,000 per project for manufacturers and green projects)
Borrower 10% - - -

Use of Purchase

Proceeds from SBA 504 loans can be used for any of the following:

Where We Lend

Please click here to view the territories in which we lend.


To be eligible for the SBA 504 Loan Program, an applicant must be a for-profit organization and fall within the size standards set forth by the SBA. The business qualifies as small if it does not have a tangible net worth in excess of $15 million and does not have an average net income after taxes in excess of $5 million for the preceding two years. Other criteria include:

Ineligible Businesses

CDC New England’s partner, BDC Capital, allows us to offer a suite of other financing products to complement the SBA 504 Program, including asset-based lines of credit, term loans, mezzanine investments, and bridge and down payment financing. Visit BDC Capital’s website to learn more.