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Business finance / SBA 504 Loan Calculator

SBA 504 Loan Calculator

Split an SBA 504 project into the bank loan, the CDC loan and your down payment, and see each monthly payment.
$

Enter a number of at least 0

Property or equipment price plus eligible costs.

%

Enter a number from 0 to 50%

At least 10% under 13 CFR 120.910: 15% if the business has operated two years or less or the building is special-purpose, 20% if both apply. The CDC share drops by the same amount.

Bank loan (50%)
%

Enter a number from 0 to 100%

Whole number, 1–30

CDC / SBA debenture (40%)
%

Enter a number from 0 to 100%

%

Enter a number from 0 to 10%

Combined monthly payment
$12,631.50
$200,000.00your down payment
$1,824,000.00total borrowed
6.77%blended rate
$0project cost $2,000,000.00
  • Bank loan
  • CDC / SBA loan
  • Your down payment
Bank first loan (50%)$1,000,000.00
CDC portion (40%)$800,000.00
Fees financed into CDC loan · 3% of $800,000.00$24,000.00
CDC loan with fees$824,000.00
Down payment$200,000.00
Bank payment · 7% over 25 years$7,067.79
CDC payment · 6.5% over 25 years$5,563.71
Combined monthly payment$12,631.50

Bank loans often have a shorter term than their amortization, which leaves a balloon. Ask your lender, and check the current CDC rate and fees at sba.gov.

See breakdown

How the SBA 504 loan calculation works

  1. The project splits 50 / 40 / 10

    On a $2,000,000 project a bank lends $1,000,000 (50%), a Certified Development Company lends $800,000 (40%) backed by the SBA, and you put in $200,000 (10%).

  2. Fees are added to the CDC loan

    Upfront SBA and CDC fees are normally financed into the debenture. SBA puts them at about 3%, so $800,000 becomes $824,000. Check the exact fee with your CDC.

  3. Each loan has its own payment

    The bank loan at 7% over 25 years is $7,067.79 a month. The CDC loan at 6.5% over 25 years is $5,563.71. Together that's $12,631.50.

  4. The CDC rate is fixed for the full term

    It is set when the SBA sells the monthly debenture and changes from month to month, so the 6.5% here is only a placeholder. The bank rate is whatever your lender quotes.

Worked example. A $2,000,000 building bought with an SBA 504 loan needs $200,000 down. The bank lends $1,000,000 at 7% over 25 years, $7,067.79 a month. The CDC lends $800,000 plus $24,000 of financed fees, $824,000 at 6.5% over 25 years, $5,563.71 a month. The combined payment is $12,631.50 at a blended rate of 6.77%.

SBA 504 Loan FAQ

How is an SBA 504 loan structured?

Usually 50% from a bank or credit union, 40% from a Certified Development Company backed by the SBA, and 10% from you. The bank loan takes the first lien and the CDC loan the second.

How much down payment does an SBA 504 loan need?

Under 13 CFR 120.910 you put in at least 10% of the project cost. It is 15% if the business has operated two years or less or the project is a special-purpose (single-purpose) building, and 20% if both apply. On a $2,000,000 project at 20% down, you pay $400,000 and the CDC loan falls to $600,000, or $618,000 with 3% fees. At 6.5% over 25 years that is $4,172.78 a month.

What can an SBA 504 loan be used for?

Major fixed assets: buying, building or renovating commercial property or land, and machinery and equipment with at least 10 years of useful life left. It can't be used for working capital or inventory.

What are SBA 504 loan rates?

The CDC portion has a fixed rate for the full term. SBA pegs it to an increment above the 10-year U.S. Treasury rate when the debenture is sold each month, so it changes month to month. The effective rate also includes ongoing fees: an SBA annual fee of up to 0.9375% and a CDC servicing fee of 0.625% to 2% of the balance (13 CFR 120.971). The bank portion is negotiated with the lender. Ask a CDC for the current month's rate; this page does not list it.

What are the SBA 504 loan terms?

The CDC loan comes in 10-, 20- and 25-year maturities. The bank loan must run at least 7 years when the CDC loan is 10 years, and at least 10 years when it is 20 years (13 CFR 120.921). Bank loans often have a shorter term than their amortization, which leaves a balloon. On the default $824,000 CDC loan at 6.5%, a 20-year term is $6,143.52 a month and a 10-year term $9,356.35.

What are the SBA 504 loan requirements?

The business must operate for profit in the U.S., be small under SBA size standards, and not be passive, speculative or nonprofit. The loan must finance fixed assets. The CDC loan is between $25,000 and $5 million, or $5.5 million for small manufacturers and some energy projects (13 CFR 120.930 and 120.931). Under SBA SOP 50 10 8.1 (effective 1 October 2026), 504 loans need a debt service coverage ratio of at least 1.15.

What fees come with an SBA 504 loan?

SBA says upfront fees total about 3% of the debt and can be financed into the loan. They include a 0.5% SBA guarantee fee, a CDC processing fee of up to 1.5%, a funding fee of up to 0.25%, and closing costs (13 CFR 120.971). On an $800,000 CDC portion, 3% is $24,000. Ongoing SBA and CDC fees are part of the effective rate. Ask your CDC for the exact figures.

SBA 504 vs. 7(a): which is better?

504 suits real estate and big equipment, with a low down payment and a long fixed rate on 40% of the cost. 7(a) is more flexible and can cover working capital. Use the SBA loan calculator for 7(a) payments.

Sources: SBA: 504 loans (uses, maturities, rate basis, about 3% fees) · eCFR: 13 CFR 120.910, 504 borrower contributions · eCFR: 13 CFR 120.920 and 120.921, third-party (bank) loan share and terms · eCFR: 13 CFR 120.930 and 120.931, 504 loan amount and limits · eCFR: 13 CFR 120.971, fees paid by the borrower · SBA SOP 50 10 8.1 (effective 1 Oct 2026): debt service coverage

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