SB 504 Loans

SKED is a U.S. Small Business Administration (SBA) Certified Development Company (CDC) partnering with the SBA to provide small business financing throughout the state of Kentucky.

Small business owners thinking of purchasing or renovating commercial real estate or purchasing equipment to grow their business should consider the SBA's 504 Loan Program. The 504 loan provides small businesses access to the same type of low cost, long-term, fixed-rate financing enjoyed by larger firms.

What can the SBA 504 loan program be used for?

Project Examples:

SBA loans Cannot be used for:

What is the maximum SBA loan amount?

Job Creation Requirements

How is an SBA Loan Structured?

A typical 504 project is structured with 50% of the project costs provided through a private-sector bank, 40% of the project costs are fixed with a fixed-rate 504 loan and the final 10% of the project cost is provided by the purchaser. Project example for a $1.0 million real estate purchase:

  Bank 504 Loan Business
Loan Amount $500,000 $400,000 $100,000
% of Project 50% 40% 10%
Term 15-years 20-years Equity
Interest Rate Market Rate Fixed Below Market  
Collateral 1st Mortgage 2nd Mortgage  

What are the eligibility issues of the SBA 504 program?

Most for-profit businesses that meet the following small business size standards:

What are the SBA closing costs?

SBA fees are reasonable and are typically financed within the loan. Please contact us for specifics related to your project.

What about the SBA paperwork?

SKED's staff of highly trained professionals will assist you throughout the application process minimizing the paperwork burden on the small business owner. Once a completed 504 loan application is submitted to SBA, a loan decision can be expected within two weeks.

Consider the advantages of a 504 loan