• The July effective interest rate for a 20 year 504 loan is 4.76%, and the rate for a 10 year 504 loan is 4.50%
  • Clint Shiflet, Senior VP & Area Manager at Idaho Central Credit Union in Meridian, named the 2016 SBA 504 Lender of the Year. Congratulations and thank you, Clint!
  • IDAHO CENTRAL CREDIT UNION was named the 2016 SBA 504 Financial Institution of the Year. "Thank you", Idaho Central Credit Union for all you do to help businesses grow!
  • SBA 504 loans approved during FY2016 now how lower fees! The "up front" SBA Guarantee Fee has been reduced from 0.5% to zero. The ongoing SBA Guarantee Fee (paid annually) is reduced from 0.9375%, or 93.75 basis points per annum, to 0.914% or 91.4 basis points per annum of the outstanding balance of the loan. The total administrative costs lowered from 2.65% to 2.15%.

Capital Matrix | 504 Loan Details

The SBA 504 loan program was developed to encourage healthy businesses to expand and create jobs by helping them access favorable fixed asset financing.  The program offers many advantages for financing real estate and equipment while allowing you to keep working capital in your business so it can continue to grow. 

  • Low down payment—typically only 10%
  • Low, fixed interest rate
  • 20-year term—no balloon payments (10 Year terms are available as well)
  • Soft costs and loan fees can be financed  

SBA 504 loans can be used to finance the following:
  • Land acquisitions and construction of a new facility
  • Purchase and renovation of an existing building
  • Purchase of equipment
  • Refinance existing debt as part of an expansion
  • Permits, impact fees, architectural fees, all soft costs and financing fees

Capital Matrix works in participation with the lender of your choice to provide the financing you need.

Example of 504 Financing

A growing business plans to buy land and construct a new building. It is estimated that the total costs will be $1,000,000. Through the SBA 504 program, the expansion could be financed as follows:

  Amount % of Project Terms Rate Collateral
Bank $500,000 50% 10 yrs Market 1st DOT
Capital Matrix $400,000 40% 20 yrs Fixed 2nd DOT
Borrower $100,000 10%
Total $1,000,000 100%
  • The bank will provide bridge/construction financing for 90% of the project cost
  • Term and loan fees on the bank financing would be negotiated with the bank; amortization is typically 20 years.
  • The interest rate on Capital Matrix's financing is determined by the sale of SBA-guaranteed debentures; rates are fixed for the 20-year term of the loan.  

For more information about the 504 program click on Business Owners and FAQs or contact us or your banker for more information.

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