SBA 504 Financing for Commercial Real Estate
Fixed-Rate • Long-Term • Owner-Occupied Execution
Cornovus Capital structures SBA 504 financing for commercial real estate acquisitions, construction, and refinance transactions nationwide. Our platform coordinates bank and Certified Development Company (CDC) participation to deliver low, fixed-rate, long-term financing for qualifying owner-occupied assets.
The SBA 504 loan program offers predictable amortizations up to 25 years and up to 90 % project financing, creating a stable, lower-cost alternative to conventional commercial loans. Cornovus Capital oversees credit modeling, structure design, and lender alignment to ensure precision, speed, and certainty of execution.
Typical SBA 504 Loan Terms
| Loan Size | $500 K – $25 MM total project cost (typically 50 % bank, 40 % CDC, 10 % borrower equity) |
| Amortization | 10-, 20-, or 25-year fully amortizing terms |
| Interest Rates | Fixed rates tied to U.S. Treasuries; typically below conventional CRE rates |
| Structure | 50 % bank loan + 40 % SBA CDC debenture + 10 % borrower equity |
| Recourse | Partial or limited recourse based on structure and lender requirements |
| Eligible Borrowers | For-profit small businesses occupying ≥ 51 % of the property for operations |
Who Qualifies for SBA 504 Financing?
- Businesses acquiring or expanding owner-occupied commercial real estate.
- Manufacturers, service providers, and professional firms building new facilities.
- Borrowers refinancing short-term or high-rate CRE debt under SBA 504 terms.
- Companies pursuing energy-efficient or green upgrades under SBA provisions.
Eligible Property Types
- Office, medical, and professional buildings owner-occupied by the business.
- Warehouse and light industrial facilities.
- Hospitality and franchise properties meeting SBA owner-use standards.
- Retail or mixed-use assets where ≥ 51 % is occupied by the borrower.
Ineligible SBA 504 Financing Uses
- Investment or non-owner-occupied real estate.
- Speculative development or fix-and-flip projects.
- Land-only purchases or projects without operating business use.
- Residential rental or non-qualifying mixed-use assets.
About Cornovus Capital
With more than 70 years of combined experience, Cornovus Capital is a trusted financial partner specializing in business financing, commercial real estate lending, and hospitality funding solutions. We structure capital strategies that help businesses acquire, expand, and optimize operations for long-term growth and financial stability.
Our expertise spans SBA 504 and 7(a) programs, CMBS and LifeCo financing, private capital solutions, and structured debt strategies. By focusing on execution precision and lender coordination, we deliver certainty and efficiency across complex transactions.
Connect with Cornovus Capital
Exploring SBA 504 financing for commercial real estate? Cornovus Capital delivers institutional-grade execution — combining credit analysis, capital structuring, and lender coordination to ensure clarity, speed, and certainty from underwriting through closing.
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