Need Financing for Commercial Real Estate? SBA 504 May Fit Long-Term Business Property

Need financing for commercial real estate for your business? SBA 504 financing is designed primarily for qualifying long-term fixed assets, including commercial real estate and large equipment.

If your company has identified a property and needs financing, start the EIN Business Funding Quick Lead Pre-Qualification with the purchase amount, available contribution and current business profile.

What Is SBA 504 Financing Used For?

The EIN Business Funding guidance identifies commercial real estate, large equipment and other long-term fixed assets as primary SBA 504 uses.

What Are Typical SBA 504 Qualification Factors?

Typical requirements include operating as a for-profit business, staying within applicable SBA financial limits and demonstrating an ability to repay.

An owner contribution is also commonly required. The funding guidance identifies approximately 10% to 20% as a typical down-payment range, although the actual requirement depends on the financing structure and lender.

What Will a Lender Review?

Funding providers may evaluate business financial performance, repayment ability, personal credit, time in business, annual revenue, cash flow and existing debt.

What Should You Prepare Before Seeking Commercial Real Estate Financing?

Prepare the property purchase price, requested financing amount, available owner contribution, business financial statements, current debt, business banking information and the intended business use of the property.

SBA 504 is not the right solution for every commercial real estate transaction. Eligibility depends on the business, property, financing structure and program requirements.

If your operating company is actively evaluating a commercial property purchase, complete the EIN Business Funding pre-qualification to explore available financing paths.

FAQs

Can SBA 504 financing be used for commercial real estate?
Yes. The EIN Business Funding guidance identifies commercial real estate as one of the primary long-term fixed-asset uses of SBA 504 financing.

How much down payment may SBA 504 require?
The funding guidance identifies approximately 10% to 20% as a typical range, although actual requirements vary.

Does SBA 504 require demonstrated repayment ability?
Yes. Demonstrated repayment ability is identified as a typical qualification requirement.