The Small Business Administration (SBA) 504 loan program is a partnership between Premier Capital, a Certified Development Company (CDC), and a lender to provide permanent financing to eligible businesses for the purchase, renovation, or expansion of owner-occupied commercial real estate. The 504 program can also be used for fixed equipment that has a useful life of at least ten years. The 504 program supports business growth and economic development by helping create and retain jobs.
Certified development companies are authorized by the SBA to administer the 504 program. Premier Capital, like most CDCs, is a private, not-for-profit company. On a typical project, the borrower contributes at least 10%, the lender provides 50%, and the 504 program provides up to 40%. New businesses and projects involving limited or special-purpose properties generally require a higher borrower contribution.
The 504 portion is funded through debentures that are guaranteed by the SBA and sold to investors. Premier Capital works with your lender to coordinate the project and permanent financing.