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SBA 504 Term Loan

The 504 loan is designed for business owners who plan to expand their operations through land acquisition, building acquisition or construction or finance machinery or equipment purchase.
Ideal ForBusiness owners who want a long-term fixed rate or adjustable rate loan to purchase, expand or construct owner-occupied real estate or purchase major, long-term (i.e. 10 year or longer usage projection) equipment. Businesses must meet SBA guidelines.
How it WorksBacked by the SBA, the 504 loan is generally is funded from three sources: Wells Fargo, the SBA and equity from the borrower.

There is also a requirement to meet certain local economic objectives, such as revitalization and redevelopment, income generation or business development.

Plus, benefit from longer terms and amortization and below market rates, compared to other types of business financing.
Does it work for you?Ask a Business Banker. We have more than 6,200 stores to serve you. Find the one closest to your home or office.

Additional Information

Credit AmountTerm Loans from $150,000 to $6,000,000 (up to $5,000,000 for public policy loans or $5,500,000 for manufacturing companies).
  • Wells Fargo Loan: Up to 20 years on Real Estate; Up to 10 years on Machinery or Equipment.
  • SBA Loan: Up to 30 year amortization.
Interest Rates
  • Wells Fargo Loan: Fixed or variable — negotiated rate between borrower and Bank.
  • SBA Loan: Below market fixed interest payment; loan rate set when debenture is sold.
  • Assets being financed.
  • Wells Fargo holds First Mortgage on real estate or First Secured Interest in equipment and machinery.
  • SBA holds Second Mortgage on real estate or Second Secured Interest in equipment or machinery.
FeesGenerally 3.5% of SBA debenture amount and this fee may be financed in the loan.
Underwriting Requirements
  • Personal guaranties by all owners of 20% or more.
  • Adequate business collateral, or personal assets securing personal guaranty, i.e. mortgage on a home.
  • Hazard Insurance.
  • 50% financed by Wells Fargo.
  • 40% SBA Loan through Certified Development Company.
  • 10% Borrower Equity injection.
For More Information
  • Review Frequently Asked Questions.
  • Compare our Small Business Administration financing solutions.
  • Learn how you can use your funds.
How to Apply