The SBA 504 loan program works with local banks to provide up to 90% long-term financing for small businesses. 504 loans can be used to finance capital projects such as construction or purchase of a new building, renovation or expansion of an existing building, or purchase of equipment with a useful life of at least 10 years. The SBA 504 loan program allows a growing business to conserve cash for working capital needs. For example, you decide to add a new addition to your building because more space is needed. The addition will cost $400,000 to complete. Using an SBA 504 loan, the bank will provide up to 50% long-term financing, a Certified Development Company (CDC) will provide up to 40% long-term, fixed-rate financing, and the borrower must provide at least 10% cash equity. Fees and closing costs can be financed into the CDC loan. For more information about the SBA 504 loan program please contact our Business Banking team.