SBA 504 Project Sizes

For SBA 504 loans, project sizes typically range from $250,000 to $10 million or more. SBA 504 loans range from $50,000 to $5.5 million but may not exceed 40% of the project size. The typical loan structure is the bank provides the senior secured loan at 50% of project cost; the SBA 504 loan is 40% of the project and secured by a second lien/mortgage; and, the required equity is only 10% of the project. Additional equity is required if the business is considered a new enterprise or if the property is considered “special purpose”. Otherwise, there generally can be flexibility in the loan structure with the bank increasing its loan beyond 50% or reducing it below 50% as the project dictates.

RLDC micro loans are generally used for smaller projects than cost effective for SBA 504 or for working capital where SBA 504 is not eligible. The RLDC micro loan program may be used in conjunction with an SBA 504 to leverage the project beyond 90% LTV and reduce the borrower’s equity to less than 10%.