Calculator
SBA 504 Loan Calculator: Buying the Building Your Business Occupies
An SBA 504 loan finances owner-occupied commercial real estate with a bank first mortgage, a fixed-rate second from a certified development company backed by the SBA, and a down payment that is often smaller than a conventional commercial loan requires. Type the price and the terms and see the structure, the payments and how they compare with the rent your business pays now. Consult an SBA lender before you rely on any of it.
Estimate the Structure · (786) 914-1017
How a 504 Loan Is Structured
In the usual structure a bank lends fifty percent as a first mortgage, the certified development company lends forty percent as a second secured by an SBA-guaranteed debenture at a fixed rate for twenty or twenty-five years, and the buyer puts in ten percent. A start-up business or a special-purpose building (a hotel, a gas station, a car wash) usually means a larger injection. The business must occupy the required share of the building; a lender confirms the current rule.
Rent Versus Ownership
The honest comparison is the rent you pay today against the total monthly payments plus the taxes, insurance and maintenance you will carry as an owner. Ownership fixes the cost and builds equity; leasing keeps capital in the business and the location flexible. The calculator shows the payments and the coverage; your CPA shows the tax side.
What the Lender Will Ask For
Two to three years of business tax returns and financial statements, a personal financial statement, the purchase contract, and an appraisal and environmental review the lender orders. SBA loans take longer to close than a conventional loan, so the contract should allow for it. See the owner-user buildings for sale and the properties whose listings mention SBA financing.
Estimate the Structure
The calculator on this page takes: the purchase price, the bank and CDC shares, the rates and terms, the rent you pay today or the building's income.
Call or text (786) 914-1017 or email sales@breakthrurealty.com. A licensed BreakThru Realty agent follows up within one business day.
Frequently Asked Questions
- Can I use an SBA 504 loan for an investment property?
- No. The 504 program is for owner-occupied real estate and equipment; the business must occupy the required share of the building. An investment property is financed with a conventional commercial loan. Consult a lender for the current occupancy rule.
- What is the difference between an SBA 504 and a 7(a) loan?
- A 504 loan is specifically for real estate and equipment, with the fixed-rate CDC second; a 7(a) loan is a general business loan that can also finance real estate, often together with the purchase of a business. A lender advises which fits.
- Are the rates in the calculator current?
- They are placeholders you should replace. The bank sets its rate; the CDC debenture rate is set when the debenture is sold. Consult an SBA lender for today's figures.
Commercial Services
Calculators
Commercial Guides
- Gross, Modified Gross and Triple-Net Leases
- CAM Charges Explained
- Tenant Improvement Allowance
- Personal Guarantees
- From Letter of Intent to Lease
- Zoning and the Certificate of Use
- Phase I Environmental Site Assessment
- SBA 504 Loans for Owner-Users
- Opportunity Zones in Florida
- The Live Local Act for Owners
- Commercial Closing Costs in Florida
- Commercial Property Tax in Florida
- Lease or Buy Your Business's Space?
- How Commercial Property Is Valued