What Is an SBA 504 Loan?
The SBA 504 Loan Program is a U.S. Small Business Administration-backed financing structure specifically designed for owner-occupied commercial real estate and major equipment purchases by small businesses. It is one of the most attractive long-term fixed-rate financing structures available in the entire commercial real estate market — and it is uniquely accessible to small-business borrowers who would otherwise face higher rates, lower leverage, and shorter terms from conventional commercial lenders.
The SBA 504 structure has three pieces:
- First Mortgage (50% of project cost) — Provided by a conventional bank lender. Typically 25-year amortization (or longer in some cases). Bank-set interest rate.
- SBA 504 Debenture (40% of project cost) — Provided through a Certified Development Company (CDC) and SBA-guaranteed. 20- or 25-year fully amortizing fixed rate, often well below market.
- Borrower Equity (10% of project cost) — Down payment from the borrower. For startups or special-use properties, the SBA requires 15% or 20% equity.
The result for the borrower: a blended low-cost, long-term, fixed-rate financing for owner-occupied commercial property — at leverage levels conventional CRE lenders simply do not offer.
Who Qualifies for SBA 504?
To qualify for SBA 504 financing in Florida, your business must:
- Be a U.S. for-profit small business (meeting SBA size standards for your industry)
- Have a tangible net worth under $20 million and average net income under $6.5 million after taxes for the past two years
- Occupy at least 51% of an existing building (60% for new construction)
- Use the property primarily for the borrower's own business operations
- Create or retain jobs (or meet alternative public policy goals)
Eligible Property Types in Florida
- Office Buildings — Doctors, lawyers, accountants, financial advisors, consulting firms
- Industrial / Warehouse — Manufacturers, distributors, contractors, service businesses
- Medical & Dental Offices — Particularly common around Lake Nona Medical City and Orlando-area hospital systems
- Retail / Restaurant — Owner-operated retail businesses and restaurants
- Hotels & Hospitality — For operators purchasing owner-occupied properties
- Self-Storage — Owner-operated self-storage facilities
- Auto Service & Repair — Service centers, oil change facilities, auto body shops
- Special-Purpose Properties — Day care centers, funeral homes, veterinary clinics
SBA 504 vs SBA 7(a): What's the Difference?
The SBA 504 program is purpose-built for owner-occupied commercial real estate and major equipment. The SBA 7(a) program is more flexible — usable for real estate, business acquisition, working capital, equipment, and inventory — but typically carries variable rates and is more often used for business acquisition or working capital. For pure owner-occupied commercial real estate transactions, SBA 504 typically delivers a lower cost of capital and longer fixed-rate term than SBA 7(a).
For more on SBA 7(a), see our SBA 7(a) loan guide.
Florida SBA 504 Lender Network
Florida has multiple active Certified Development Companies (CDCs) that originate the SBA 504 debenture portion of these transactions. These CDCs partner with both regional and national banks that originate the first-mortgage portion. Michael R. Linton at Linton Global Solutions has direct relationships across the Florida CDC and SBA Preferred Lender network — ensuring borrowers are placed with the right combination of CDC and first-mortgage bank for their specific transaction and timeline.
Authoritative information on the SBA 504 program is available directly from the U.S. Small Business Administration.
The SBA 504 Closing Process in Florida
A typical SBA 504 closing in Florida takes 60–90 days from complete application through funding. The process involves:
- Application & Pre-Qualification — Establish borrower eligibility, property eligibility, and CDC/bank fit
- Commitment Letters — From both the bank (first mortgage) and CDC (504 portion)
- Appraisal & Environmental — Standard Phase I environmental and MAI appraisal
- SBA Authorization — Formal SBA approval of the 504 portion
- Closing — Bank first-mortgage closes first; SBA debenture closes 30–60 days later through interim funding
- Debenture Sale — SBA aggregates and sells debentures monthly; permanent financing locks in
Why Choose Michael R. Linton for Your Florida SBA 504 Transaction?
SBA 504 transactions are technically straightforward but operationally complex — multiple lenders, SBA approvals, CDC paperwork, and specific timing requirements. Michael R. Linton has been intermediating SBA 504-financed transactions in Florida for nearly four decades, maintains direct relationships across the Florida CDC and bank lender network, and can structure transactions that maximize the leverage and fixed-rate term available to owner-occupied small-business buyers. Linton Global Solutions also coordinates property identification, due diligence, lease structuring (for partial leasing), and post-close support across the broader commercial real estate transaction.
Frequently Asked Questions
What is an SBA 504 loan?
An SBA 504 loan is a Small Business Administration-backed commercial real estate financing program designed for small-business owners purchasing owner-occupied commercial property or major equipment. The structure combines a bank-provided first mortgage (typically 50% of project cost), an SBA-debentured second mortgage through a Certified Development Company (typically 40%), and a borrower equity contribution (typically 10%).
How much can I borrow with an SBA 504 loan?
The SBA 504 portion is capped at $5.5 million for most projects (and up to $5.5 million for energy-efficient or manufacturing projects, which can stack across multiple loans). Combined with the bank first mortgage, total project size can exceed $14 million for owner-occupied commercial real estate.
What types of commercial real estate qualify for SBA 504?
SBA 504 requires the borrower to occupy at least 51% of an existing building or 60% of a new construction. Eligible property types include office buildings, industrial / warehouse facilities, medical and dental offices, retail/restaurant space, hotels (for operators), self-storage facilities, and special-purpose properties — anywhere a small business operates from owner-occupied real estate.
What is the SBA 504 interest rate?
The SBA 504 debenture rate (the SBA portion) is a fixed long-term rate tied to U.S. Treasury yields plus a small spread. It is typically below market for commercial real estate lending. The bank first-mortgage portion carries a separately negotiated rate. The blended cost of capital for SBA 504 financing is often the most attractive available for owner-occupied commercial real estate.
How long does it take to close an SBA 504 loan in Florida?
A typical SBA 504 closing in Florida takes 60–90 days from complete application through closing — sometimes shorter with experienced CDC and bank partners, sometimes longer for complex transactions. Michael R. Linton coordinates with Florida-active CDCs and SBA Preferred Lenders to expedite the process.
Who can help me get an SBA 504 loan in Florida?
Michael R. Linton at Linton Global Solutions has 39 years of Florida SBA-financed transaction experience. He coordinates directly with Florida CDCs (Certified Development Companies) and SBA Preferred Lenders to structure and place SBA 504 financing for owner-occupied commercial real estate transactions. Call (312) 612-1031.
Article Summary
The SBA 504 loan program is the most attractive long-term fixed-rate financing structure available for owner-occupied commercial real estate in Florida — combining a bank first mortgage, an SBA-guaranteed debenture (typically 40% of project cost at a below-market fixed rate), and just 10% borrower equity. Total project sizes can exceed $14 million. Eligible property types include office, industrial, medical, retail, hotel (for operators), self-storage, and special-purpose properties. Michael R. Linton at Linton Global Solutions has 39 years of Florida SBA-financed transaction experience and maintains direct relationships across Florida CDCs and SBA Preferred Lenders.
Key Takeaways
- ✓SBA 504 combines 50% bank first mortgage + 40% SBA debenture + 10% borrower equity for owner-occupied CRE.
- ✓SBA debenture portion offers a 20- or 25-year fully amortizing fixed rate — typically below market.
- ✓Maximum SBA 504 portion is $5.5 million; total project size can exceed $14 million.
- ✓Borrower must occupy at least 51% of an existing building (60% for new construction).
- ✓Eligible property types include office, industrial, medical, retail, hotel, self-storage, and special-purpose.
- ✓SBA 504 is generally lower-cost than SBA 7(a) for pure owner-occupied CRE acquisitions.
- ✓Closing timeline is typically 60–90 days through Florida CDCs and SBA Preferred Lenders.
- ✓Linton Global Solutions has direct relationships across the Florida SBA lender network for expedited execution.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving 500+ banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
Ready to Talk About Your Florida SBA 504 Deal?
Get a free consultation with Michael R. Linton — 39 years of Central Florida CRE experience. Zero pressure.
Schedule a Free ConsultationWorks Cited
- U.S. Small Business Administration. "504 Loan Program." SBA.gov, https://www.sba.gov/funding-programs/loans/504-loans. Accessed Jun 6, 2026.
- National Association of Development Companies. "SBA 504 Loan Program Statistics." NADCO, https://www.nadco.org/. Accessed Jun 6, 2026.
- U.S. Small Business Administration. "Find a Certified Development Company." SBA.gov, https://www.sba.gov/local-assistance. Accessed Jun 6, 2026.
- CDC Small Business Finance. "SBA 504 Loan Process Guide." CDC Small Business Finance, https://cdcloans.com/. Accessed Jun 6, 2026.
- U.S. Small Business Administration. "SBA Size Standards." SBA.gov, https://www.sba.gov/document/support-table-size-standards. Accessed Jun 6, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.
Interest rates, loan terms, leverage levels, and pricing references shown on this page are estimates only, based on current Florida commercial real estate market conditions and lender feedback as of the page's last update. They are not commitments to lend, are not loan approvals or pre-qualifications, and do not guarantee any specific loan terms or that financing will be available to any particular borrower or property. Actual interest rates, fees, leverage, amortization, prepayment terms, and other loan terms depend on borrower qualifications (credit, net worth, liquidity, experience), property characteristics, lender-specific underwriting requirements, third-party reports, and market conditions at the time of application. All loans are subject to lender credit approval, underwriting, and applicable federal, state, and local lending regulations. Linton Global Solutions is a Florida-licensed commercial real estate brokerage (FL Broker #BK703722); it is not a lender. Financing is sourced through third-party lender relationships, and final loan terms are determined by the originating lender. This page does not constitute consumer credit advertising under Federal Reserve Board Regulation Z (12 CFR Part 1026) and is intended for informational purposes only for commercial real estate professionals, investors, and owners considering commercial mortgage financing. Past loan terms or transactions do not guarantee future results.