Tools / SBA 504 loan calculator
SBA 504 loan calculator
The 50/40/10 stack for projects with commercial real estate: a bank first lien, a fixed-rate CDC debenture, and your down payment. Blended payment and rate, piece by piece.
Project inputs
User-adjustable; enter your actual quote.
Required. Use the current effective rate published by your CDC.
The bank first lien already prices at $7,553 a month on $1,000,000 over 25 years. Enter the CDC debenture rate, published on your CDC's rate sheet, to add the second piece and blend the two.
The stack
Bank-piece default is Prime 6.75% (as of August 13, 2026) + 1 as a neutral starting point, not a quote. The CDC debenture rate is set at the monthly debenture sale and published by the CDC industry; it is not in our data pipeline, so this calculator takes it as an input. Estimates only, not a loan offer.
The 50/40/10 stack
A standard 504 project splits three ways: a bank holds a 50% first-lien loan at a conventional rate, a Certified Development Company (CDC) funds 40% through an SBA-guaranteed debenture at a fixed rate, and the borrower puts in 10%. Startups and special-use properties each add 5 points to the borrower's share, which comes out of the CDC piece: a special-use startup puts in 20% against a 30% debenture.
The debenture rate is set when the monthly debenture pool is sold and is published by the CDC industry. Our data pipeline does not carry it yet, which is why the calculator asks you to enter it rather than claiming a current figure.
504 vs 7(a) when the deal includes real estate
504 money is for fixed assets: owner-occupied real estate, construction, and long-lived equipment. It does not finance goodwill or working capital, so a business acquisition with a building often pairs the two programs, with the 504 taking the property and a 7(a) loan covering the business value. SBA doubled the combined 7(a) and 504 ceiling to $10 million effective July 4, 2026.
When 504 beats 7(a)
Three things tilt a real-estate-heavy deal toward 504: the debenture rate is fixed for its full term while most 7(a) loans float over Prime (6.75% as of August 13, 2026); the 10% standard down payment is the same as the 7(a) equity injection but buys a longer blended amortization on the property; and the bank only risks a 50% first lien, which can sharpen its pricing. Compare the blended effective rate here against your 7(a) quote for the same project, and run both payment structures through the DSCR calculator.
Frequently asked questions
Where do I find the CDC debenture rate?
From your CDC directly, or from the effective rates the CDC industry (NADCO and individual CDCs) publishes after each monthly debenture sale. Enter the effective rate, which includes servicing fees, rather than the bare debenture coupon.
Can a 504 loan buy a business by itself?
No. The 504 program finances fixed assets, not goodwill or working capital. An acquisition that is mostly business value with some real estate typically uses a 7(a) loan, or pairs a 504 on the property with a 7(a) on the business.
Is there a cap on combining 504 with a 7(a) loan?
SBA doubled the combined 7(a) and 504 ceiling to $10 million effective July 4, 2026. Before relying on the higher ceiling, confirm timing and eligibility with your lender and CDC.
Why does my down payment change the CDC piece?
The bank piece stays at 50%. When the borrower contribution rises to 15% or 20% (startup or special-use add-ons), the debenture shrinks to 35% or 30% so the three pieces still sum to the whole project.
Is the blended rate what I will be quoted?
No lender quotes a blended rate; it is a comparison figure. You will get two separate notes with their own rates and terms. The blend here weights each rate by its opening balance so you can compare the stack against a single-loan alternative.