SBA 504 Loans for Commercial Real Estate in Southern California

The SBA 504 loan program is one of the most powerful long-term financing tools available for small business owners looking to purchase or refinance owner-occupied commercial real estate. At Commercial Capital Partners, we help clients throughout the Inland Empire and Southern California structure and close SBA 504 transactions with confidence and efficiency.

What Is an SBA 504 Loan?

The SBA 504 loan is a fixed-rate, long-term financing program specifically designed for major fixed assets, primarily real estate and large equipment. Unlike the SBA 7(a) loan, the 504 program uses a unique two-lender structure: a conventional bank provides approximately 50% of the loan, a Certified Development Company (CDC) provides up to 40% backed by an SBA debenture, and the borrower contributes as little as 10% as a down payment.

This structure results in below-market, fixed interest rates for the CDC portion, making the 504 an excellent choice for businesses that want long-term rate certainty and wish to preserve working capital.

SBA 504 Loan Terms and Benefits

  • Down payment: As low as 10% (15% for special-use properties; 20% for startups)
  • Loan amounts: Up to $5 million (up to $5.5M for manufacturers and energy projects)
  • Repayment terms: 10, 20, or 25 years, fully amortizing
  • Interest rate: Fixed below-market rate on the CDC portion
  • Use: Owner-occupied commercial real estate, major equipment, construction

What Can an SBA 504 Loan Finance?

  • Purchase of owner-occupied commercial real estate (office, industrial, retail, medical, gas station, hotel)
  • Refinance of existing commercial real estate debt
  • Ground-up construction or major renovation of commercial facilities
  • Long-life equipment and machinery (10+ year useful life)
  • Energy-efficient improvements to existing facilities

SBA 504 Loan Requirements

To qualify, your business must operate as a for-profit company in the U.S., have a tangible net worth under $20 million, and have average net income under $6.5 million after taxes for the past two years. The property must be at least 51% owner-occupied for existing buildings (60% for new construction). Personal cash flow, business profitability, and management experience are all evaluated during underwriting.

Recent SBA 504 Deals Closed

  • $3,007,500 SBA 504 loan. Gas station refinance and cash-out, Colton, CA
  • $1,908,000 SBA 504 loan. Purchase of a medical office, Temple City, CA

Work With an Experienced SBA 504 Advisor

Navigating the SBA 504 process requires coordinating between a bank lender, a CDC, and the SBA itself, three separate parties with different timelines and requirements. Commercial Capital Partners simplifies this process by acting as your single point of contact. We identify the right lender and CDC for your transaction, prepare your documentation, and manage the process from application through closing.

Serving Rancho Cucamonga, the Inland Empire, Los Angeles, and all of Southern California. Call (909) 721-5915 or contact us to get started.