A Long-term, Fixed-rate Solution

The U.S. Small Business Administration established the 504 loan to help businesses purchase owner-occupied commercial real estate and equipment while retaining working capital. The SBA 504 loan puts financing within reach for small businesses through low down payments and long-term, low, fixed interest rates. And it reduces the risk to lenders through a shared financing structure.

SBA-504-REAL-loanThe Loan Structure

Business Finance Capital (BFC) partners with lenders to provide up to 90 percent financing to businesses for the purchase of owner-occupied commercial real estate and equipment. BFC provides up to 40 percent of the financing and the lender typically provides 50 percent. Business owners pay as little as 10 percent down.


Borrower pays 10 percent of project costs using cash, prepaid project-related expenses; equity of 15-20 percent is required for start-up businesses and purchase of single-use properties such as hotels, car washes, and gas stations.


BFC makes an SBA-guaranteed loan of up to 40 percent of project costs, plus SBA loan fees, and is secured by a 2nd Deed of Trust; the total loan amount depends on the type of business and project.


A bank, credit union or other non-bank lender makes a commercial loan, typically 50 percent of total project costs, which is secured by a 1st Deed of Trust.

Helping Small Business Think Big

BFC is Southern California’s leading SBA 504 loan Program expert, with over 20 years in the industry. We help California businesses grow by facilitating the premier tool for Real Estate financing—the SBA’s 504 loan.

Contact one of our loan experts to find out if your business is eligible.