SBA 504 Loan Calculator
The 504 program splits financing between a conventional lender (bank) and a Certified Development Company (CDC), with your down payment as the remainder.
This is an estimate only, not a loan offer, pre-qualification, or rate quote. SBALoanPro is not affiliated with, endorsed by, or operated by the U.S. Small Business Administration. Actual project structuring, rates, and down payment are set by your bank and CDC.
Methodology & Assumptions
The calculator splits your total project cost into three pieces the way a real 504 deal is structured: a down payment (10% baseline, stepping up for newer businesses or special-use property), a bank portion (modeled at roughly 50% of project cost), and a CDC debenture portion covering the remainder. Each of the bank and CDC portions is then amortized separately at the rate and term you enter, and the two monthly payments are added together for your combined estimate. Down payment percentages and the roughly 50/40/10 bank/CDC/equity split reflect the SBA 504 program's typical general structure — actual splits, especially the bank share, are negotiated deal-by-deal and can differ from this simplified model. Program maximums, current debenture rates, and CDC fees should always be confirmed directly with a CDC or at sba.gov.
Worked Example
Inputs: $1,000,000 project cost · established business · standard-use property.
With a 10% down payment ($100,000), the bank funds roughly $500,000 and the CDC debenture covers the remaining $400,000. At a 7.5% bank rate over 25 years and a 6.4% CDC rate over 25 years, the combined monthly payment lands somewhere in the mid-$6,000s — with the CDC portion's fixed rate giving you long-term payment certainty on nearly 40% of the total financing. Adjust the inputs above for your actual project cost and quoted rates.
What This Calculator Doesn't Do
It doesn't include CDC or SBA processing fees, which are typically rolled into the debenture amount in a real transaction and would modestly increase the CDC-portion payment shown here. It also doesn't verify that your intended use qualifies as an eligible fixed asset under the 504 program — see the 7(a) vs. 504 comparison for the use restrictions that apply.
Frequently Asked Questions
Why does this calculator split my loan into two portions?
Because that's how a real 504 loan works — a bank funds roughly half at its own rate, and a CDC funds the rest through a fixed-rate government-backed debenture. Your total payment is both combined.
Why does my down payment percentage change?
It steps up from a 10% baseline for newer businesses or special-use property, and combines if both apply — mirroring how CDCs typically price the down payment.
Can I use a 504 loan for working capital or inventory?
No — 504 financing is restricted to fixed assets like real estate and equipment. Working capital needs require a separate source such as a 7(a) loan.
Is the CDC portion's rate really fixed?
Yes, for the life of the loan once it closes. The bank portion is negotiated separately and may be fixed or variable — use your lender's actual quote for accuracy.