SBA 504 Loans

The 504 program was created to allow small and medium-size businesses to obtain long term, fixed-rate financing at below market rates for up to 20 years. This is particularly attractive for self-storage facilities. The SBA-guaranteed debentures are pooled monthly and sold to private investors.  If you want to view the historical bond debenture rates, you can click here.

Projects are financed per the following structure: A private lending institution covers 50 percent of the project cost. A Certified Development Company (CDC) finances 40% (not to exceed $1,000,000) through SBA The small business must invest at least 10% (15% for special purpose facility/20% for special purpose and start-up businesses)

Types of Financing

  • Purchases
  • New Construction
  • Renovations
  • Machinery and Equipment

Loan Amounts: $750,000-$5,000,000

Terms: 20 Years Real Estate, 10 Years Machinery and Equipment

Interest Rate: Prime + .5% – 2.75% variable from primary lender (Varies by credit risk) CDC Rates typically fixed at less than Prime rates. Click here to see historical rates

Loan To Value: 50 – 90%

Prepayment Penalties: There is a ten year pre-pay penalty. 10%, 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%.  This applies to the 2nd with the bond debenture.

Fees: None to minimal lender fees . Lenders may have a packaging fee or a good faith deposit. Most lenders have customary closing costs. Construction fee, if applicable, to offset monitoring costs SBA charges a fee of approximately 2% (depending on loan amount and percentage of guarantee)


  • US Citizen or resident alien
  • Good credit/character
  • Reasonable financial statement or credible projections
  • Business must meet SBA size standards
  • Collateral: First lien on land, building, equipment and inventory. Personal guaranties of the principal owners are also required. Additional outside collateral may be required in certain circumstances if the self-storage facility is not 100% collateralized.

To pre-qualify for financing, download the following forms and provide the following information:

  1. Loan Application  (pdf)  (Word) or Apply Online
  2. Personal Financial Statement  (pdf)  (Word)
  3. Resume  (pdf)  (Word)
  4. 2013 Year End Business Financials
  5. 2014 Year-To-Date Business Financials

This is a general guideline for documents normally needed depending on the type of financing being applied for.