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You are here: Home / Small Business Loan Programs / SBA 504 Loan Program

Growth Capital Corp. is a Certified Development Company (CDC), which is a private nonprofit corporation, certified by the SBA to process 504 loans and contribute to the economic development of the community. The SBA 504 Loan Program was developed by the U.S. Small Business Administration (SBA) to make available long term, fixed interest rate loans with lower down payment requirements to existing small businesses with fixed asset financing needs.  At Growth Capital we work together with business owners and bank loan officers to administer SBA 504 loan participation.

Mission Spotlight

Orlando Baking Company

Keeping the tradition of the old world ways of baking European classics

Use of Funds

Fixed Asset Financing

  • Land & Building Acquisition
  • Building Improvements/Renovations
  • New Construction
  • Purchase of Machinery & Equipment

Available Financing

  • Up to 40% of Total Project Cost may be Financed by SBA 504
  • Minimum Equity Requirement of 10% of Total Project Cost
  • SBA Loan Sizes from $50,000 to $5,000,000 for regular loans, and up to $5,500,000 for manufacturing loans.
  • SBA Loan Terms are 10 or 20 years (fully Amortizing)
  • Interest rates are fixed at the time of the SBA loan closing based on Current market U.S. Treasury rates plus approximately 1.5%
  • Participating Bank Financing Terms, Rates, & Fees are Negotiated between the Customer & Bank Loan Officer

Eligible Businesses

For Profit Businesses

  • Business Net Worth Less Than $15 Million
  • Business Profit After Tax Less Than $5 Million
  • Job Creation Requirement of 1 New Job for each $65,000 of SBA Funding. 1 New Job for each $100,000 of SBA Funding for manufacturing loans (companies in NAICS sectors 31, 32, 33)
  • All Industry Types: Manufacturing, Industrial, Service, Retail, Medical, Wholesale, and Distribution

Associated Costs and Terms

  • Processing Fee of 2.15% of the SBA loan amount is financed into the SBA loan
  • Fee of ½% on the Bank’s First Mortgage Amount collectable at the SBA closing
  • Ongoing Servicing Fees totaling .64% of the outstanding SBA loan balance are included into the Effective Interest Rate
  • SBA 504 loan Closing and Legal Costs ($3,500) are the Responsibility of the Customer but may be financed in the SBA loan
  • The Participating Bank must advance an interim loan for up to 90% to fund the SBA portion.  SBA 504 is “take-out” permanent, second mortgage financing

Contact Us

The primary advantages of the SBA 504 Loan Program to a small business owner are the lower down payment, longer loan terms and fixed interest rates.

Call us today about the SBA 504 Loan Program

(216) 592-2332

  1. Receive Loan Referral
    Bank officer communicates with Growth Capital about prospect.
  2. Eligibility Review
    Growth Capital ensures loan is eligible for SBA 504 financing.
  3. Underwrite Loan
    Work concurrently with bank partner to approve the loan and receive bank loan commitment.
  4. Loan Committee
    Growth Capital loan officer presents loan request to Growth Capital loan committee.
  5. Submit Loan to SBA Authorization for Final Approval
    Customer signs application and loan is submitted to SBA for final approval.
  6. Final SBA Authorization Approval Received
    Banks is sent a copy of the commitment letter.
  7. Loan Closing
    Bank closes transaction with a permanent bank loan and an interim loan.
  8. Growth Capital Loan Closing
    Growth Capital pays off the interim loan.