Logo Logo Logo

Sign up for our newsletter

SBA 504

The SBA 504 loan program is the U.S. Small Business Administration’s long-term financing tool for economic development. The 504 Program provides growing businesses with long-term, fixed-rate financing for fixed asset projects. The program allows businesses to contribute as little as 10% equity into a project.

The typical structure of a 504 deal is as follows:

  • 50% of project financed by a bank
  • 40% of project financed by SBA 504
  • 10% equity contribution

Eligible Businesses

  • Tangible Net Worth less than $15 million
  • Average net income less than $5 million (2 year average)

Eligible Uses

  • Purchasing land and improvements including existing buildings
  • Grading, street improvements, utilities, parking lots, and landscaping.
  • Construction of new facilities, or modernizing, renovating or converting existing facilities
  • Purchase of long-term machinery and equipment


  • $5,000,000 for standard eligibility projects
  • $5,500,000 for manufacturing eligibility projects


  • Interest rate fixed for the term of the loan; rates are pegged to an increment above the current market rate for 5-year and 10-year U.S. Treasury issues
  • 20 years for real estate; 10 year for machinery & equipment
  • One job created or retained for every $65,000 borrowed
  • Personal guaranties of principal owners are required


  • $2,500 processing fee deposit (fully refunded at funding)
  • Other one-time, up-front fees of approximately 2.65% of the loan amount; included in the loan amount and paid over the term of the loan
  • $4,500 document preparation fees; included in the loan amount and paid over the term of the loan
  • A 0.5% fee against the financial partner’s 1st mortgage for subordination

If you have any questions on the loan process or the loan program contact Melissa McLaughlin at (717) 213-5042.

Other typical expenses associated with borrowing will apply including but not limited to costs for appraisal, title company, searches, recording, filing, and any legal work not included with the set document package.

Latest News

October 3rd, 2017

Harrisburg, PA (October 3, 2017) The Harrisburg Regional Chamber & CREDC (Chamber & CREDC) is proud to have worked with WCI Partners in the redevelopment


August 29th, 2017

It is true, economic development financing programs don’t fund every need.  These programs are legislated and monitored for compliance.  They have rules on eligibility, restrictions


June 13th, 2017

HARRISBURG, PA (June 13, 2017) – The Harrisburg Regional Chamber & CREDC (Chamber & CREDC) announced today that 2201 NFS LLC, a related Real Estate



Logo Logo Logo

Sign up for our newsletter