SBA Lending Overview with the Birmingham Urban League

SBA Primary Loan Programs

What is the 504 loan program?

The CDC/504 Loan Program provides long-term, fixed rate financing for major fixed assets that promote business growth and job creation.

504 loans are available through Certified Development Companies (CDCs), SBA's community-based partners who regulate nonprofits and promote economic development within their communities. CDCs are certified and regulated by the SBA.

The maximum loan amount for a 504 loan is $5 million. For certain energy projects, the borrower can receive a 504 loan for up to $5.5 million per project, for up to three projects not to exceed $16.5 million total.

What is the 7a Loan Program?

The 7(a) Loan Program, SBA’s most common loan program, includes financial help for small businesses with special requirements such as:

o Short- and long-term working capital

o Refinance current business debt

o Purchase real estate, furniture, fixtures, and supplies

The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. Your lender will help you figure out which type of loan is best suited for your needs.

Please contact the instructor Roderick.Perkins@sba.gov with any questions or concerns you may have.