Georgia Small Business Capital
114 Newstreet, Unit I-1
Decatur, Georgia 30030
(404) 373-8601
(404) 373-8706 - fax

SBA 504 Loan Program

The purpose of the SBA 504 Loan Program is to provide healthy, expanding businesses with long term below market rate financing for the acquisition of land and building, machinery and equipment and construction and renovation. The 504 Loan Program, established by Congress in 1986, is the first national financing program to recognize contributions of small and medium sized businesses toward local economic development and job growth in the U.S. This financing is specifically designed to meet those needs. Businesses can access the 504 Loan Program through Florida Business Development Corporation (FBDC).

  • Commercial loans for healthy expanding businesses.
  • Fixed rate below market financing.
  • Financing for fixed assets: real estate, machinery and equipment.
  • Terms of 20 years for real estate, 10 years for machinery and equipment.

Eligible Borrowers

  • For profit businesses (corporation, partnership or proprietorship)
  • Tangible net worth not to exceed $7.5 million
  • Net profit after taxes not to exceed $2.5 million during previous 2 years

Maximum Amount

Up to 40% of eligible cost, with a $2,000,000 debenture maximum. Manufacturers are eligible for up to $4,000,000 (request details). Total project size is unlimited.

Use of Funds

  • Purchase of land
  • Construction of building 
  • Modernization, renovation or improvement of building
  • Purchase of machinery or equipment with useful life of 10 years or more


    Financing Method

    Private lender provides 50% of project cost, and the Small Business Administration 504 Loan provides 40%.

    Equity Requirements

    At least 10 percent.

    504 Loan Terms

    • Maximum of 40 percent of project
    • Terms of 20 years for real estate, 10 years for machinery and equipment. 504 loans are fully amortized.
    • Fixed, below market interest rate.
    • Total fees of 2.65% plus an attorney closing fee. These fees can be included in the 504 loan amount and financed over a 20-year term.

    Application Process

    If interested, a business should call Florida Business Development Corporation. Generally a summary of project cost estimates and two (2) years of financial statements should be available to discuss eligibility of the small business for the 504 program. 

    Term: Maturities of 10 and 20 years are available on the 504 debenture, depending on the useful life of the assets. A minimum of 10 years is required from the private lender on real estate financing and 7 years on machinery and equipment. 

    Collateral: econd Mortgage and / or lien on assets purchased with proceeds of 504 loans. 

    Personal Guarantees: Personal guarantees of the principals (ownership of 20% or more) are required. Corporate Guaranties are also required. 

    Down Payment: The small business concern must provide at least 10% of the project cost as equity or subordinated debt. 

    Typical Structure:

    • 50% first mortgage from private lender.
    • 40% second mortgage from FBDC (100% SBA guaranty)
    10% equity or subordinate debt.

    FBDC Direct Loan Fund

    The purpose of the Direct Loan Fund is to provide small businesses with a source of gap financing otherwise not available through conventional lending sources. Loans will be made to 504 loan eligible recipients. 

    Eligible Projects

    • Acquisition and/or construction of real estate
    • Acquisition of machinery and equipment
    • Working capital
    • Management buy-outs
    • Corporate acquisitions

    Eligible Businesses

    The business should be at least 2-3 years old with proven performance and growing cash flow. Management must be knowledgeable, experienced and financially committed to the business.

    Loan Amount

    Loans will range from $50,000 to $250,000.

    Interest Rate

    Fixed for the term of the loan at Prime rate.


    Borrower will be responsible for out of pocket closing costs to include, but not limited to, attorney fees, title insurance, recording fees, etc.


    Loans will require a subordinate lien on non-504 project real estate. 20% or greater owners will provide guarantees.

    Response Time

    5-10 days to receive commitment.

    Source of Capital

    Florida Business Development Corporation Direct Loan Fund.