Businesses

SBA 504 Loans

The Best Kept Secret in Commercial Real Estate Financing

As a business owner, the Small Business Administration (SBA) 504 loan program is the best tool for purchasing or constructing owner-occupied commercial real estate. By using the SBA 504 you will be able to finance your project with the lowest down payment and a 20-year fixed rate term.

SCED is licensed by the SBA to market, package and service SBA 504 loans in California.

Why should you use the SBA 504?
  • Commercial Real Estate’s lowest down payment retains capital in the business. The SBA 504 has a down payment minimum of 10% (15% for start-up businesses)
  • 20-year fixed interest rate on commercial real estate
  • No balloon payments
  • Subject property is the collateral
  • Projections can be considered for growing businesses
Eligible Uses
  • Purchase land with a building
  • Construction of a new building
  • Renovating an existing building
  • Refinance of existing debt with expansion (under certain circumstances)
  • Machinery and equipment with a minimum useful life of 10 years
Ineligible Uses
  • Inventory
  • Working Capital
Self-Prequalification
  • Do you operate a for profit business?
  • Do you intend to occupy a minimum of 51% of the property for your business?
  • Do you have cash available for the down payment & closing costs?
  • Does your business have the ability to repay the loan from existing cash flow (or if growing, projections)?

Structure of an SBA Loan


SCED SBA 504 loan Pie Chart

An SBA 504 Loan has Three Participants
  • Bank – provides a loan for at least 50% of the total project cost secured with a first mortgage
  • SCED – provides a SBA-guaranteed 504 loan for up to 40% of the total project cost or a maximum of $5 million secured by a second mortgage
  • Business Owner – contributes a down payment of at least 10% (15% for start-up businesses or single purpose properties)
Occupancy Requirements
  • 51% owner occupancy for existing building
  • 60% owner occupancy for new construction

Ready To Take Action?

Apply Online Now

Current SBA 504 Loan Rates

10-Year Fixed Rate 4.15%
20-Year Fixed Rate 4.64%
Refinance Rate 4.67%
Loan Rate Pricing Changes Monthly

Business Financing Success Stories

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“These are specialty-use buildings, so traditional financing… well, banks get a little scared to fund a project like this, even with a lot of collateral.”

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Premier Oil Change

Redding, CA
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“To be honest, we didn’t really do much, SCED did everything.”

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Taylor Made Landscaping

Redding, CA
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“For me, it wouldn’t have been possible without SCED.”

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Action Sports Rentals

Redding, CA
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“I really wanted to do the right thing for downtown.”

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CPR, Inc.

Redding, CA
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“A business development loan provided the financial boost for internally redesigning the machine and eliminating the flaw in the process.”

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Sof-Tek Integrators

Redding, CA
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“The biggest challenge to obtaining financing was being a new business,” says Juli, “and fighting the assumption that I didn’t know what I was doing.”

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JR Martin and Associates

Redding, CA
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“I knew SCED was working for my success, not just their own bottom line.”

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LPL Financial

Redding, CA
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“An appraisal was done which included improvements, so my loan funded all the remodeling, improvements, new chairs, and computers,” Adelman says.

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Everything Medical

Redding, CA
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“SCED really is a huge benefit for businesses owners. It’s just an amazing program.”

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Caterpillar Campus

Redding, CA
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“How are you supposed to be new and succeed if you don’t change anything?!”

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Signarama

Redding, CA
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Julie gives credit to SCED Loan Manager Ryan Richardson for “not just evaluating the numbers, but evaluating me."

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Tsasdi Resort

Lakehead, CA
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“SCED meets a critical demand for small business.”

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Know Opportunity

Redding, CA
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“SCED didn’t have their own agenda, and they were helpful throughout the entire process. They made it seem so easy.”

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Boundary Waters Screenprinting

Redding, CA