The SBA 504 loan program uses a three-part financing structure:
Private Lender Portion: 50% of the total project cost
CDC/SBA Portion: Up to 40% of the total project cost (guaranteed 100% by the SBA)
Borrower Equity: At least 10% of the total project cost
The 504 loan program is designed to help small businesses acquire fixed assets, such as real estate or equipment, with long-term, fixed-rate financing.