September 504 Loan Rates

Real Estate 25-year Fixed: 2.74%

Real Estate 20-year Fixed: 2.65%

Equipment  10-year Fixed: 2.28%

Debt Refi 25-year Fixed: 2.77%

Debt Refi 20-year Fixed: 2.69%

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- currently at HISTORICAL LOWS, 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

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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
  • Existing 504 projects and government-guaranteed loans are not eligible (including 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 - Currently at HISTORICAL LOWS. 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

Fast Track Loans

Up to $20,000 for start-up and existing businesses at 5-6% fixed

More Info

Micro and Small Loans

Micro Loans up to $50,000 and Small Loans up to $250,000 at 5-6% fixed with flexible terms

More Info

SBA 504 Loans

Real Estate or Machinery and Equipment Loans up to $5.5 million at low, fixed rates

More Info

September 504 Loan Rates

Real Estate 25-year Fixed: 2.74%

Real Estate 20-year Fixed: 2.65%

Equipment  10-year Fixed: 2.28%

Debt Refi 25-year Fixed: 2.77%

Debt Refi 20-year Fixed: 2.69%

South Eastern Ecomonic Development Corporation home page

80 Dean Street,
Taunton, MA 02780

1-508-822-1020

Business Hours:
Mon-Thu 8am-5pm
Friday 8am-4pm

SBA Lender Certified CDFI US Department of Treasury
SEED Corporation is a certified lender in Massachusetts and Rhode Island.

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SEED Corporation is an equal opportunity lender and business assistance partner.