From $500K to $12.5 Million

SBA 504 Loan Financing Criteria

At KRAM Capital, we work every day to help small business owners find the funding they need to turn their dream companies into reality. SBA 504 loans, also referred to as the Certified Development Company program, are designed to provide financing for the purchase of fixed assets such as real estate, buildings, and machinery, at an affordable below-market rate. This program is the perfect way to get your business off the ground, and KRAM Capital is here to help you through it. Start your application today!

What can the SBA 504 Loan be used for?

SBA 504 Loan allows the financing of much larger projects than 7(a). If you looking for a loan amount greater than $5 million and the proceeds are for long term assets, the total project can be greater than $12,5000,000.

 What are the SBA 504 loan borrowing limits?

  • Up to $5 million of aggregate SBA eligibility on standard and public policy 504 projects
  • Up to $5.5 million per 504 project involving small manufacturers with no limit on the total SBA dollars available 
  • Up to $5.5 million per 504 energy efficient green projects not to exceed $16.5 million in the aggregate. (NOTE: SBA loan amounts only; there is no limit on overall project size.)

What are the SBA 504 loan terms?

  • Up to 20 years for Real Estate
  • Up to 10 years for Equipment

How are the SBA 504 loans structured?

Standard New Business or Special Purpose New Business or Special Purpose
Down Payment 10% 15% 20%
Bank Loan 50% 50% 50%
CDC/SBA 40% 35% 30%


Who can occupy the Real Estate under SBA 504?

  • Existing Buildings – Business must occupy at least 51% of the project within one year of ownership.
  • New Construction – Business must occupy at least 60% of the project upon occupancy and 80% within 10 years.
  • The borrower may form a real estate holding company that leases 100% to the operating business, which then subleases surplus space (up to 49%).


What is the MAX loan leverage with an SBA 504 Loan?

Up to 90%

The eligible use of SBA 504 loan proceeds includes, but not limited to the following:

  • Acquisition of land and construction of new building
  • Acquisition of land and existing building
  • Remodel, convert, expand or renovate existing building
  • Leasehold improvements
  • Purchase of improvements, including grading, street improvements, utilities, parking lots and landscaping.
  • Energy efficient green projects (reduce energy consumption by at least 10% or generate at least 10% renewable energy).
  • Purchase of office furniture, fixtures and equipment.
  • Contingency reserve, not to exceed 10% of the construction costs.
  • Associated fees and soft costs (architectural and engineering fees, appraisals, environmental investigations, closing costs, etc.).
  • Repayment of interim points, fees and interests.

Types Of Property We Finance







Special Purpose

Manufactured Housing

What People Say ?

Thank you for doing such a great job with our loan. You all made the process seamless and that is always appreciated, no matter how complex the process.

Sara Willams

Why Choose Us?

KRAM Capital has helped me achieve my growth and financial goals. I’ve used other lenders for both SBA and Conventional loans in the past and there is no comparison as to how smooth and efficient this process was.

David H.

Thank you so much!

For any Restaurateur who needs help obtaining the necessary financing for their business, I would truly recommend KRAM Capital.

Walter Parks

Find Us

Call Us
Office: (470) 447-2077
Fax: (470) 447-2078
3379 Peachtree Road, Suite 555
Atlanta, GA 30326
Monday-Friday: 9am to 5pm
Saturday, Sunday — closed

Ready to take advantage of your
next opportunity with a SBA 504 Loan?