SBA 504 loans in Utah.
An SBA 504 loan finances owner-occupied commercial real estate and long-life equipment, pairing a bank loan with an SBA-backed loan so the business can put down as little as 10%. SCS structures the project and places it with the lender.
Own the building you operate in. SBA 504 loans finance owner-occupied commercial real estate and long-life equipment with as little as 10% down and a long-term fixed rate on the SBA portion, and they can refinance the real estate debt you already have.
How is an SBA 504 loan split?
Type your project cost to see the typical split.
The SBA portion tops out around $5M on most projects, so the bank covers more on larger ones.
An illustration of the typical structure, not a quote or an approval. We confirm your numbers once we've reviewed your file.
What can an SBA 504 loan be used for?
Long-term capital for the property and equipment your business runs on.
Buy your building
Stop paying rent and start building equity in the space you already operate from.
Build or expand
New construction, an addition or a renovation for a growing operating business.
Refinance
Replace a balloon, variable rate or short amortization with long-term debt.
Heavy equipment
Machinery and equipment with a long useful life, on terms to match.
How is an SBA 504 loan structured?
A 504 pairs a bank loan with an SBA-backed loan. The bank typically funds 50% and holds the first lien. The SBA portion, up to 40%, carries a fixed rate and is arranged by the bank. You contribute the balance, usually 10%.
That makes the bank the key: it has to commit before the SBA portion can move forward. We structure the project, place it with the right lender, and manage the file to closing.
Buying a business that comes with its building? A 504 for the real estate can be paired with an SBA 7(a) loan or other capital for the rest of the purchase. See SBA 7(a) and strategic term loans.
- Down payment
- As little as 10%; we confirm your number when we review your file
- SBA portion
- Up to $5,000,000 (more for manufacturers and energy projects), plus the bank portion
- Terms
- 10, 20 or 25 years, matched to the life of the assets
- Rate
- Fixed on the SBA portion, set when it funds; bank portion set by the lender
- Property
- Buildings your business operates from; you can usually lease out part of the space
- Who it fits
- Owner-operated small and mid-size businesses. We confirm eligibility before any lender sees your file.
Can an SBA 504 loan refinance existing debt?
If your building or equipment loan has a balloon coming, a variable rate, or a short amortization, a 504 refinance can replace it with long-term debt and a fixed rate on the SBA portion, with or without an expansion.
Loans that have been in place a while and paid on time are usually good candidates. Once we've reviewed your file, we'll tell you whether yours qualifies and what a refinance could save.
Eligibility is determined by the lender and the SBA Standard Operating Procedure in force when the loan receives its SBA loan number. Program rules change.
Where in Utah does SCS arrange SBA 504 loans?
We structure 504 projects across Utah, most often in the Salt Lake City area and St. George. The first step is always the same: we underwrite the project before a lender sees it.
Good fits for a 504
Business owners who want to stop paying rent, businesses expanding into a larger building, new construction for an operating business, heavy equipment with a long useful life, and owners refinancing real estate debt into longer terms.
Not a fit
Investment property bought to rent out, working capital, or inventory. For those, ask about SBA 7(a) or Bridge Liquidity.
Focus industriesHow SBA 504 works for manufacturers, healthcare practices and hotels and hospitality operators.
Common questions about SBA 504 loans
What is an SBA 504 loan?
An SBA 504 loan finances fixed assets an owner-operated business will use: buying, building or renovating commercial real estate, and long-life machinery and equipment.
It combines a bank loan, usually 50% of the project, with an SBA-backed loan of up to 40% that the bank arranges. The business contributes the rest, typically 10%.
How much down payment does an SBA 504 loan need?
As little as 10% of the project.
Newer businesses and special-purpose buildings sometimes need a bit more, and we'll confirm your number once we've reviewed your file.
Can I refinance commercial real estate in Utah with an SBA 504 loan?
Often, yes. SBA 504 can refinance debt on owner-occupied real estate or equipment, with or without an expansion.
Loans that have been in place a while and paid on time are good candidates. Once SCS has reviewed your file, we'll tell you whether yours qualifies and what a refinance could look like.
What are the loan amounts, terms and rates?
The SBA-guaranteed portion runs from $25,000 up to $5,000,000 per business, or $5,500,000 per project for small manufacturers and eligible energy projects. The bank portion is additional, so total projects can be considerably larger.
Terms are 10, 20 or 25 years, based on the useful life of the assets. The SBA portion carries a fixed rate set when it funds, based on U.S. Treasury rates. Once SCS has reviewed your file, we'll walk you through the rate and terms you can expect.
Does the business have to occupy the building?
Yes. A 504 is for property your business uses.
You can usually lease out part of the space, and we'll confirm the details for your property. Investment property owned purely for rent does not qualify.
Do you work with businesses in St. George and across Utah?
Yes. SCS structures SBA 504 projects statewide, most often in the Salt Lake City area and St. George.
Is SCS a lender?
No. SCS is an independent capital advisory and placement firm.
We structure the 504 project and place it with the right lender, and the lender handles the SBA side. Approval and final terms are set by the lender and SBA.
Ready to own the building you work in?
Apply now, or start with a free Capital Assessment and we'll tell you whether a 504, a 7(a), or a combination fits your project.
Prefer to talk first? Call 801-362-3002