November 504 Loan Rates
Real Estate 25-year Fixed: 7.23%
Real Estate 20-year Fixed: 7.18%
Equipment 10-year Fixed: 7.12%
Debt Refi 25-year Fixed: 7.26%
Debt Refi 20-year Fixed: 7.21%
SBA 504 Loans
Commercial Real Estate and Machinery and Equipment Financing
Under the SBA 504 Program SEED operates as a Certified Development Company (CDC) and can provide: long term (20 or 25 years), low fixed interest rates, and up to 90% financing for small businesses looking to purchase, construct, or renovate commercial real estate or purchase machinery and equipment.
The SBA 504 Program provides a partnership between a lending institution of the applicant’s choice and SEED/SBA. The lending institution’s portion is financed at conventional rates and terms. SEED's knowledgeable and experienced staff can not only help borrowers find a traditional bank or credit union to partner with, but will also handle all the paperwork needed for the project! See sample loan structure below:
How it works

Loan Amount
Total projects range from $300,000 (SEED’s minimum amount is $120,000) to $13 million or more (SEED’s maximum is $5.5 million for manufacturing businesses and $5 million for all others). On projects smaller than $300,000, SEED evaluates the benefits to the client, and may use its small loan programs.
Eligible Businesses
For-profit corporations, partnerships or proprietorships; industrial, commercial or service businesses with a tangible net worth not in excess of $15 million; less than $5 million average net profit after taxes during previous two years. Examples include but are not limited to:
- Restaurants
- Office buildings or condos
- Manufacturing
- Hotels/motels
- Retail
- Medical offices
- Law Practice
- Heavy machinery & equipment
Eligible Projects
- Acquisition of land and buildings
- Construction and/or renovation
- Equipment and furnishings
Occupancy Requirement
Owner must occupy at least 51% of an existing building (for their business); 60% for new construction at day one and 80% within 10 years.
Personal Guarantees
Required for all owners of 20% or more of the operating company or real estate holding company. Additional guarantees may be required for minority owners or affiliate businesses.
Job Requirement
- 1 job per $75,000 of SBA/SEED funds (over a period of two years)
- 1 job per $120,000 of SBA/SEED funds for small manufacturers (over a period of two years)
SBA 504 Debt Refinance (with or without expansion):
Now a permanent part of the SBA 504 Program:
- Traditional 504 Loan Program regulations apply
- Structured like SBA’s traditional 504 loan
- Business must be in operation for at least two years- with no changes to ownership during that period
- Debt to be refinanced must be a commercial loan incurred for the benefit of the small business concern not less than two years before the date of the 504 application
- Use of proceeds which were used to acquire a 504 eligible fixed assets (i.e. owner-occupied real estate, land, and equipment, etc.) and secured by 504 eligible fixed assets- loan to value maximum is 90%
- Loan to be refinanced must be current on all payments during the past 12 months
- Cash out allowed for eligible business expenses- contact us to discuss
- Ability to refinance government-guaranteed loans (including 504, 7A, and USDA)
SBA 504 Advantage
- Provides up to 90% financing (only 10% down) of the total project costs, which preserves your business’ working capital
- Below Market Interest Rates See current rates.
- Long term fixed rate- 20 or 25 years; 10 years on machinery and equipment
- Lower Real Estate Expenses - Owning commercial real estate instead of leasing can lower real estate expenses, and provide the added benefit of converting a large expense into a fixed cost that does not increase as rapidly.
- SBA fees for SEED’s 40% are rolled into the 504 loan.
- No Balloon Payments, Calls or Covenants
- Partnership with SEED and Lending Institution, allowing borrower to keep their existing bank relationship and streamline process
- Assumable Loans - Future sales of properties financed by our 504 loans are benefited by having assumable mortgages at low fixed interest rates.
- Cash out- within the debt refinance program