The Small Business Administration (SBA) 504 loan program provides funds for major fixed assets that will subsequently help grow a company or create additional jobs. Getting an SBA loan can be a complex and time-consuming process, which is why working with an experienced lender can be crucial to ensure that you get approved—and in a timely manner.
To highlight the importance of working with an experienced lender, a 504 loan may be more difficult to get compared with other SBA loans because it has multiple sources of funding. Fifty percent of the loan proceeds are issued by an SBA-approved lender, 40% comes from a Certified Development Company (CDC), while the remaining 10% is the borrower’s required down payment.
Below, we’ve compiled a list of the best SBA 504 lenders based on lending volume for the 2023 fiscal year.
Best SBA 504 Lenders by Funding Volume for Fiscal Year 2023
Dollar Amount of SBA 504 Loans Funded | Number of SBA 504 Loans Approved | Average SBA 504 Loan Size | Primary Geographic Areas Served | |
|---|---|---|---|---|
 | $632,869,000 | 461 | $1,372,818 | AZ, CA, HI, NV, OR |
 | $402,287,000 | 416 | $967,036 | FL |
 | $338,902,000 | 283 | $1,197,534 | AL, FL, GA |
 | $291,292,000 | 226 | $1,288,903 | CT, NJ, NY, PA |
 | $284,523,000 | 217 | $1,311,166 | CA |
 | $281,477,000 | 227 | $1,239,987 | AZ, CA, NV |
 | $197,505,000 | 191 | $1,034,058 | CO, ID, UT, WY |
 | $196,832,000 | 192 | $1,025,167 | IL, IN, IO, KY, MO |
 | $190,518,000 | 117 | $1,628,359 | AR, NM, TX |
 | $166,474,000 | 144 | $1,156,069 | AZ, CA, NV |
TMC Financing
| |
Amount of SBA 504 Loans Funded | $632,869,000 |
Number of SBA 504 Loans Approved | 461 |
Average Loan Amount | $1,372,818 |
SBA Preferred Lender? | Yes |
Common Loan Purposes | Commercial real estate, other fixed assets |
Primary Geographic Areas Served | AZ, CA, HI, NV, OR |
Loan Amount | No stated limit |
Repayment Term | Up to 25 years |
Who Should Consider TMC Financing & How to Apply
Mortgage Capital Development Corporation, doing business as TMC Financing, is a good option if you’re looking for large loan amounts. While many SBA 504 lenders have a maximum funding amount of $5.5 million, TMC Financing has no stated upper limit and has financed projects ranging in size from $500,000 to $44 million in value.
As the most experienced SBA 504 lender in terms of nationwide volume of loans funded, the TMC Financing team can also help you structure your loan in a manner most likely to get you approved, as it boasts a 95% overall SBA approval rate. No additional collateral is required other than the fixed asset being financed, and you can add closing and other soft costs to the loan amount. Finally, as a premier certified lender with the SBA, many applicants enjoy quick turn times for loan approvals.
To learn more or to apply, visit the TMC Financing website. Once the process is started, you’ll have options to get a prequalification letter, something that can give you more credibility when putting in an offer on a building.
Florida Business Development Corporation (FBDC)
| |
Amount of SBA 504 Loans Funded | $402,287,000 |
Number of SBA 504 Loans Approved | 416 |
Average Loan Amount | $967,036 |
Common Loan Purposes | Machinery, equipment |
Primary Geographic Areas Served | FL |
Loan Amount | No stated limit |
Repayment Term | 25 years |
Who Should Consider FBDC & How to Apply
FBDC is another provider in our guide that offers access to SBA funding with no stated limit for the SBA project size. Since its footprint is primarily limited to FL, it’s a good option if you don’t meet the service areas of TMC Financing.
It follows the standard allowable uses of the SBA 504 program. Funds can be used for things like purchasing real estate and land, financing building construction costs and improvements, and acquiring machinery or equipment. Some special use projects are also allowed and may include car washes, gas stations, hotels, marinas, farms, and hospitals. Startups can also be eligible for financing, although an additional 5% down payment would be required.
To learn more about its products, you can visit the FBDC website. There, you’ll be able to download a loan application. If you’re not ready to apply, you can just provide your contact information for a return phone call.
Florida First Capital Finance Corporation (FFCFC)
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Amount of SBA 504 Loans Funded | $338,902,000 |
Number of SBA 504 Loans Approved | 283 |
Average Loan Amount | $1,197,534 |
Common Loan Purposes | Machinery, equipment |
Primary Geographic Areas Served | AL, FL, GA |
Loan Amount | $20 million+ |
Repayment Term | Up to 25 years |
Who Should Consider FFCFC & How to Apply
FFCFC provides SBA 504 financing for a wide range of uses. It separates this offering into commercial real estate loans, machinery and equipment loans, commercial debt refinancing, financing for economic developers, a bridge loan program, and a green loan program.
The lender currently also works with the Rebuild Florida Business Loan Fund, a fund designed to provide Florida small businesses with easy access to working capital to grow and expand. However, fund availability may currently be difficult to secure, as the initial budgeted amount of the funds has already been fully disbursed. Additional funds are now currently only available 1) as existing loans are repaid; and 2) to eligible businesses impacted by Hurricane Michael.
To apply, you can visit the FFCFC website. At the time we attempted to go through the process, the online application was not functioning, so you may need to instead call or email a loan officer in a branch near you.
Pursuit Lending
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Amount of SBA 504 Loans Funded | $291,292,000 |
Number of SBA 504 Loans Approved | 226 |
Average Loan Amount | $1,288,903 |
Common Loan Purposes | Commercial real estate, other fixed assets |
Primary Geographic Areas Served | CT, NJ, NY, PA |
Loan Amount | $5.5 million |
Repayment Term | Up to 25 years |
Who Should Consider Pursuit Lending & How to Apply
Pursuit Lending—formerly known as New York Business Development Corporation and currently listed on the SBA website as Empire State Certified Development Corporation—is a good option for borrowers who live within its geographic service areas. It may also be a good consideration for minority business owners, as the company states that 35% of its total funding is made to minorities and women business owners.
As one of the more experienced lenders in our guide, funding speeds should also be quick. Pursuit Lending states that in most cases, it can coordinate and match the funding speed with the timeline of your first mortgage bank loan.
If you’re unsure if an SBA 504 loan is right for you, visit the Pursuit Lending website to view information about the program, submit an online application, or request a callback to discuss your situation. Pursuit Lending also offers SBA 7(a) loans and SBA microloans in the event that a 504 loan is not right for you.
Business Finance Capital (BFC)
| |
Amount of SBA 504 Loans Funded | $284,523,000 |
Number of SBA 504 Loans Approved | 217 |
Average Loan Amount | $1,311,166 |
Common Loan Purposes | Commercial real estate, equipment |
Primary Geographic Areas Served | CA |
Loan Amount | $5.5 million |
Repayment Term | Up to 25 years |
Who Should Consider BFC & How to Apply
BFC is an excellent option for business owners wanting transparency when it comes to rates, terms, and qualification requirements for the SBA 504 loan program. BFC’s website covers many of these items in much greater detail than other SBA-approved lenders, something that can minimize the likelihood of your application being denied after applying.
For example, in addition to the general SBA 504 eligibility requirements, BFC provides a list of eligible business types on its website. It also provides an FAQ section that details nuances of the application, approval, and funding processes. If you still have questions, you can complete an online form requesting a callback from one of its loan experts.
If you decide to work with BFC, note that it does require a $2,500 deposit to cover costs incurred as part of the application and closing process. This amount will be applied to the loan fees if you end up getting approved. If, however, your application is not approved, your deposit will be refunded net of any expenses incurred.
Visit the BFC website to apply.
California Statewide Certified Development Corporation (CSCDC)
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Amount of SBA 504 Loans Funded | $281,477,000 |
Number of SBA 504 Loans Approved | 227 |
Average Loan Amount | $1,239,987 |
Common Loan Purposes | Buying, building, or renovating existing buildings |
Primary Geographic Areas Served | AZ, CA, NV |
Loan Amount | $5.5 million |
Repayment Term | Up to 25 years |
Who Should Consider CSCDC & How to Apply
CSCDC can be a good option if you’re a business owner wanting additional guidance or options on the lender you want to work with. CSCDC is unique in this regard as it partners with other banks to also offer financing. In other words, CSCDC can work with your current bank for an SBA 504 loan or help you find a more suitable lender based on your preferences.
It has partnerships with a number of conventional banks, credit unions, and savings loan associations. Regardless of which lender you may end up selecting, you can help expedite the process by preparing commonly required financial documents. CSCDC recommends having three years of tax returns, year-to-date financial statements, and a description of property and building improvements you wish to make.
You can visit the CSCDC website for more information on the SBA 504 program and how you can get started.
Mountain West Small Business Finance (MWSBF)
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Amount of SBA 504 Loans Funded | $197,505,000 |
Number of SBA 504 Loans Approved | 191 |
Average Loan Amount | $1,034,058 |
Common Loan Purposes | Commercial real estate |
Primary Geographic Areas Served | CO, ID, UT, WY |
Loan Amount | $5.5 million |
Repayment Term | Up to 25 years |
Who Should Consider MWSBF & How to Apply
If you’re looking to get a high level of service, MWSBF is an excellent choice as it has received numerous high ratings online and retains an A+ rating with the Better Business Bureau (BBB). MWSBF is a not-for-profit organization and acts as a lending intermediary working with third-party institutions to facilitate access to capital to support business growth and job creation.
When you visit its website, you’ll see that it offers four main lending products, three of which fall under the SBA 504 program. These programs are labeled as loan programs for buildings, equipment, and debt refinancing. MWSBF offers a fourth non-SBA product for working capital, which is available for up to $350,000, to startups and existing businesses.
It does not have an online application. Rather, you must visit the MWSBF’s website and complete a form requesting a callback from one of its lending representatives.
Small Business Growth Corporation (Growth Corporation)
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Amount of SBA 504 Loans Funded | $196,832,000 |
Number of SBA 504 Loans Approved | 192 |
Average Loan Amount | $1,025,167 |
Common Loan Purposes | Debt refinance, equipment, building purchase |
Primary Geographic Areas Served | IL, IN, IO, KY, MO |
Loan Amount | $5.5 million |
Repayment Term | Up to 25 years |
Who Should Consider Growth Corporation & How to Apply
The lender may be a good fit for business owners wanting to receive excellent customer service and the ability to develop a long-term relationship with a lending institution. Although Growth Corporation is the largest SBA 504 lender in the state of Illinois, the team itself is relatively small. It has a low turnover rate for its employees, giving you a much larger chance of being able to work with the same team year over year.
Growth Corporation also has the ability to approve and fund loans more quickly than many other providers, especially for smaller loan amounts. As it has earned status through the SBA’s Accredited Lenders Program (ALP), it has increased authority to process and review loans without the need to send files to the SBA for a second review. For example, loans under $500,000 can be approved, closed, and serviced completely in-house.
To learn more or apply, visit the Growth Corporation website.
Capital Certified Development Corporation (Capital CDC)
| |
Amount of SBA 504 Loans Funded | $190,518,000 |
Number of SBA 504 Loans Approved | 117 |
Average Loan Amount | $1,628,359 |
Common Loan Purposes | Real estate, fixed assets, land, equipment, construction, debt refinance |
Primary Geographic Areas Served | AR, NM, TX |
Loan Amount | $5.5 million |
Repayment Term | Up to 25 years |
Who Should Consider Capital CDC & How to Apply
Capital CDC offers a unique perk with its SBA 504 loans. Loan applicants will have access to a specialized SBA closing attorney who can answer any questions regarding the funding and closing process. They will also review and prepare all of the legal documents necessary, making this lender a potentially good fit for business owners with concerns about the complexity and legal aspects of the SBA lending process.
Like many SBA lenders, you’ll need to make a deposit for your loan application package to be considered complete. This deposit is the lesser of 1% of the SBA loan amount or $2,500 and is refundable under certain circumstances.
Capital CDC does not offer online applications. Instead, interested borrowers can view the lender’s website to find contact information for the nearest loan officer in order to request a return phone call or email.
CDC Small Business Finance Corporation (SBFC)
| |
Amount of SBA 504 Loans Funded | $166,474,000 |
Number of SBA 504 Loans Approved | 144 |
Average Loan Amount | $1,156,069 |
Common Loan Purposes | Commercial real estate, equipment |
Primary Geographic Areas Served | AZ, CA, NV |
Loan Amount | $5.5 million |
Repayment Term | Up to 25 years |
Who Should Consider SBFC & How to Apply
If you are short on time and are looking to put in an offer for a commercial property with SBA 504 financing, SBFC can be a good option. This is because it has the ability to issue pre qualifications within 24 hours, something that can make your offer stand out to sellers. However, be aware that it may still take upwards of 60 or more days to get approved and finalized for funding after you submit a loan application.
To aid your decision-making process, SBFC provides checklists and guides on its website to ensure you’re getting the best financing for your circumstances. These educational resources include checklists comparing leasing a building versus purchasing it and comparisons of various loan programs, such as SBA 7(a) loans.
To get the process started, you can visit the SBFC website. If you’re not ready to submit a formal loan application, you can request a callback from a lending representative to discuss other options.
How We Chose the Top SBA 504 Lenders
The top SBA lenders in our guide were selected primarily based on the dollar amount of SBA 504 loans funded for fiscal year 2023. This information was obtained from the SBA’s lender reports database. Other information, such as the number of approved loans and average loan sizes, were considered as secondary factors in our process of selecting the top SBA 504 lenders.
Who Should Consider SBA 504 Loans
SBA loans are typically best for businesses that are not in urgent need of funding. This is because these loans can be complex and may take several months to get approved and funded. However, they can also offer some of the most competitive interest rates available since they’re partially insured by the US government, making them less risky for lenders to issue funding.
The SBA has different loan programs, each with varying rates, terms, and allowable uses. Our guide on the different types of SBA loans details each of these areas to help you identify the program best suited for your needs.
How to Apply for an SBA 504 Loan
Getting an SBA loan can seem like a daunting task, but it can be broken down into the five major steps.
- Confirm your intended use of funds
- Match the SBA loan suited for your intended uses
- Verify your SBA loan eligibility
- Shop lenders
- Apply and provide required documentation
When going through each of these steps, you may find that an SBA 504 loan may not be the best fit for you. Our guide on how to get an SBA loan goes through the nuances involved with each of these steps so that you can get the loan best suited for your needs in the shortest period possible.
Frequently Asked Questions (FAQs)
It can take 60 to 90 days or more to get an SBA 504 loan. SBA loans tend to require a significant amount of paperwork, and so much of this time is needed for the lender to conduct a proper due diligence review of your company’s credit and finances.
An SBA 504 loan is structured into three main components: 50% of the funding amount is issued by an SBA-approved lender, 40% is issued by a CDC, and the remaining 10% is a down payment from the borrower.
In most cases, you can get $5 million in funding. Certain types of projects, such as green projects or manufacturing, however, may have an allowance of up to $5.5 million.
Bottom Line
Getting an SBA 504 loan can be confusing and time-consuming, which is why working with an experienced SBA lender can be so important. The lenders listed in this guide have a large amount of expertise in this program, demonstrated by the large volume of loans they’ve funded. SBA lenders can be region-specific, so we recommend narrowing down the list by first selecting companies that operate in your area.
