SBA 504 Loans

If your business is struggling to find financing for land, buildings, or equipment, Madison One CUSO can help you explore your SBA 504 loan options.

SBA 504: Government-Guaranteed Loans To Promote Job Creation

You can’t grow your business—physically or financially—without a significant investment in property, equipment, or land. But many companies positioned for growth don’t have the available capital to fund their expansion, and traditional banks may not be willing to take a risk by offering a conventional loan. That’s where Small Business Administration (SBA) 504 lenders like Madison One CUSO come in.

The 504 loan program provides government-guaranteed loans through Certified Development Companies (CDCs) to certified small businesses that have exhausted other financing options. Like SBA 7(a) loans, the 504 program enables your business to grow without losing significant cash flow.

The Madison One CUSO team has decades of combined experience helping small businesses secure financing from the SBA and United States Department of Agriculture (USDA). We can help you determine which loan option offers you the most freedom and flexibility. As an SBA-certified lender with two credit union partners, we have the resources and expertise to provide creative solutions for complicated financial challenges.

SBA 504 Loan Rates and Terms

Loan amount: Up to $15 million
Terms: 7–25 years
Rates: 5 yr CMT + 2.50–4.00%
Territory: Nationwide
Occupancy: Owner-occupied commercial real estate

SBA 504 Loan Requirements

To be eligible for a 504 loan, businesses must:

Qualify as a for-profit small business (as defined by the SBA) operating in the U.S.
Have a tangible net worth of less than $15 million
Have a net income of less than $5 million

Benefits of 504 Loans

Long repayment options and high loan amounts
Low down payment requirements (10% in many cases) and flexible collateral options
Fully amortized loans with no balloon payments
Better cash flow compared to other loan options

Ready To Explore Your SBA Loan Options?

An online SBA 504 loan calculator can give you an idea of potential payments or loan terms, but it can’t tell you if you’re eligible—or if a 504 loan is actually right for you. Speak with an expert at Madison One CUSO to get professional recommendations about SBA and USDA loans and learn if you’re a good candidate for financing.

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How Can My Business Use an SBA 504 Loan?

SBA 504 loans have similar eligibility requirements and benefits to 7(a) loans, with a smaller range of applications. Borrowers must use 504 funds for assets that promote job creation and business growth, such as:

Land or building purchases
The construction or renovation of new or existing facilities
Improvement of exterior amenities, like parking lots, streets, or landscaped areas
Machinery and equipment acquisitions

Businesses cannot use SBA 504 for investment and multifamily property financing or working capital.

Our SBA 504 Loan Application Process

Madison One CUSO is more than a lender—we’re your guide throughout the loan application process, whether you’re interested in an SBA 504 loan or the USDA REAP program. Our goal is to simplify the loan process, provide recommendations that offer your business the best loan terms and rates, and secure financing in as little time as possible.

1. Loan Consultation

In a 15-minute phone call, we can determine your eligibility and recommend a loan program (or several, depending on your needs).

2. Documentation Collection

To ensure we have a good chance of securing your loan, we collect all the documentation needed to confirm your eligibility.

3. Term Sheet Issuance

Our team creates a term sheet outlining your loan details, amount, and rates. If you agree to the terms, you sign, and we move forward.

4. Business Analysis and Underwriting

Once you sign the term sheet, we analyze your business history, financial statements, and credit before underwriting your loan.

5. Application Submission

We submit your credit memo to our credit union partners. If they approve, we send your SBA application to ensure they will guarantee the loan.

6. Loan Closure and Ongoing Support

If the SBA approves your loan, we draw up documents and close your loan. From there, our team is always available to answer questions and help you secure more financing.

Get Expert Guidance Throughout the SBA Loan Application Process

Madison One CUSO is more than an SBA lender. We’re a partner that guides our business members through the financing process, and we use our extensive experience to find funding solutions other lenders can’t offer. With two credit union partners and the ability to work with third-party banks, we can offer a combination of loans to get you the amount of capital you need.

Whether you’re new to SBA loans or well-versed in your government-guaranteed loan options, our team is here to answer your questions, offer support, and find the best solutions for your small business.

Explore Your Other Loan Options

SBA 504 loans aren’t for everyone. Luckily, Madison One CUSO offers several SBA- and USDA-backed loans for any purpose, from business acquisitions to renewable energy upgrades.

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