Financing up to 90% for Owner-Occupied Commercial Real Estate
Low down payments. Fixed rates. Real estate and equipment financing designed for small business growth.
What is an SBA 504 Loan?
The SBA 504 loan is a business financing option provided by the SBA through AmPac Business Capital, a not-for-profit Certified Development Company. The 504 loan is designed to help businesses grow and create jobs by financing the purchase, improvement, or refinance of owner-occupied commercial real estate and fixed equipment with as little as 10% down.
Here’s how it works:
Bank/Lender provides a 1st mortgage for 50%
SBA/CDC provides a 2nd mortgage for up to 40%
Borrower contributes a minimum 10%
There is no limit on the total project size, with up to $5 million available from the SBA portion. AmPac has successfully funded projects up to $30 million, supporting a broad spectrum of business needs. For projects that meet specific public policy goals, the SBA portion can increase to $5.5 million per project. The loan offers below-market fixed interest rates with 10, 20, or 25-year terms, and is fully amortized with no balloon payments. SBA fees are included in the loan, helping to reduce out-of-pocket costs for borrowers.
Is My Business Eligible?
At-a-Glance Checklist:
For financing the purchase, improvement, or refinance of owner-occupied commercial real estate and fixed equipment
The business must be a for-profit entity in the United States
Applicant Business must be 100% owned by a U.S. citizen or legal permanent resident
Must occupy at least 51% of the property, or 60% for new construction
Have a tangible business net worth of $20 million or less
Have an average net income of $6.5 million or less (after federal income taxes) over the past two years
Cannot have defaulted on a federal loan or be involved in political, lobbying, gambling, speculative, or passive income activities
Demonstrate the ability to repay the loan on time from business cash flow, historically or with detailed and verified projections and assumptions
Create or retain jobs, or meet a public policy goal (such as supporting minority- or woman-owned businesses, rural development)
What Documents Do I Need?
Personal Information – Who Are You?
Demonstrates your background and financial responsibility.
- Personal Resume (Business Experience)
- Personal Financial Statement
- Last 3 Years of Personal Federal Tax Returns
- Last 3 Months of Personal Bank Statements
- Driver’s License Copy
- Trust Documents (if applicable)
Business Information – What Do You Do & How Have You Performed?
Shows your business’s financial health and future viability.
- Business Debt Schedule
- Last 3 years Business Tax Returns
- Personal Tax Returns
- Last 3 Months of Business Bank Statements
- Current year-to-date balance sheet and income statement
- Current AR/AP Agings
- Business Plan (Required for Startups)
- 3-Year Financial Projections (For Startups or Major Expansion)
Pre-Screen Questions (Be prepared to discuss):
- Do you know your credit score?
- Are you looking to refinance existing business debt?
- Any pending lawsuits?
- Any unpaid federal or state taxes?
- Ever defaulted on government debt?
- History of bankruptcy or foreclosure?
- Any unpaid collections, judgments, or tax liens?
- Will the business be expanding or relocating?
- Do you own 20%+ of other companies?
- Did you receive PPP or EIDL loans?
Additional Documents (if applicable)
- Purchase Agreement / Title / Escrow Instructions
- Existing Lease Agreement
- PPP/EIDL Loan Docs & Loan Numbers
Have all the information you need to get started?
Loan Calculator
| SBA Guaranty (~0.5%) | — |
| CDC Origination (1.5%) | — |
| SBA Underwriting | $2,500 |
| Third-Party Legal | $2,500 |
| Total Fees (est.) | — |
Estimates only. Actual rates, fees, and payments vary. Contact AmPac for a personalized quote.
Estimates only. 7(a) total interest assumes the current rate holds for the full term, which is best-case for 7(a). Actual savings will differ.
Each payment is split between principal (reducing your balance) and interest. Early in the loan most of your payment is interest; over time more goes to principal.
| Year | Payment | Principal | Interest | Balance |
|---|
This calculator assumes a fully amortized fixed-rate loan. Your actual loan terms may differ.
504 Loan Terms and Conditions
Interest Rates
SBA RATE: Fixed at the time of the debenture sale. The current month’s rate is posted and locked in at funding.
Estimated Fees
SBA FEES: Typically 2.15% of the SBA loan portion, plus legal fees. These are financed into the SBA loan amount.
Additional Costs
Costs, including but not limited to appraisals, environmental reports (if needed), and escrow/closing fees (including legal and insurance), may be included in the total loan financing.
Collateral
Not Sure Where
to Begin?
Our AmPac Business Champions are ready to help every step of the way.
Whether you have questions or need personalized support, we’re here to guide you through the process. Just reach out, we’ve got you!