You are here: Home » SBA 504 Loan Guarantee

SBA 504 Loan Guarantee

SBA 504 Loan GuaranteeĀ  is made through a CDC (community development company). This is a not for profit corporation that will contribute in the community for the development of increased economic and employment growth. A CDC will fund at a 100% SBA 504 guaranteed debenture.

The SBA 504 loan is actually called a SBA CDC/504 loan. The loan is made for community development through the capital injection based on the financing of fixed assets. This is a long term loan of up to 20 years.

The break down of the SBA 504 loan guarantee is as followed:

  • 50% of the loan amount from a private institution (bank or private lender). This would be the first lien on the secured assets.
  • 40% of the loan amount would be 100% guaranteed for the small business concern. This is considered the second lien.
  • 10% (in some cases up to 15%) capital from the small business seeking the loan.

The SBA 504 loan guarantee states a guarantee for 100 percent of the loan received from the community development company, or the CDC

Go to the SBA 504 Loans center page to learn more about the SBA 504 loan.
Learn more about the SBA 504 Loan Application and what to expect.

Comments on this entry are closed.