Skip to content
FirstBankoftheLake_Logo_with-FDIC-digital-sign

Put the Power of the SBA 504 Loan to Work for Your Business.

SBA-LenderDecal-FINAL
google-review
atomic-img-02

Get started by answering a few simple questions.

atomic-img-02

The SBA 504 loan is a great fit if you’re:

  • Purchasing commercial real estate for your business

  • Building a new facility or expanding your current location

  • Buying major equipment or machinery to grow operations

  • Refinancing commercial real estate or equipment loans

You’ve got a vision. We’ll help you get there, step by step.

We know applying for an SBA 504 business loan can feel overwhelming. That’s why we walk with you through every step offering expert guidance, honest feedback, and constant communication. You’ll never wonder where things stand or what comes next.

  • Step 1: Tell Us Where You're Headed Open or Close

    Start by sharing your business goals and what you're hoping to achieve. Whether you're buying, expanding, or just getting started. This short form helps us connect you with the right specialist.

    ✔ Quick and simple to complete
    ✔ No credit check
    ✔ Helps us understand what success looks like for you

  • Step 2: Meet Your Loan Specialist Open or Close

    You’ll talk one-on-one with a lending expert who’s here to support you, not sell to you. We’ll listen, ask questions, and start mapping out a path that fits your timeline, your experience, and your vision.

    ✔ Personal guidance from someone who knows SBA loans inside and out
    ✔ No pressure, no confusion
    ✔ You’ll leave knowing exactly what to expect

  • Step 3: See If You’re Ready to Move Forward Open or Close

    Together, we’ll look at the essentials to make sure you're in a strong position to move ahead. If something’s missing, we’ll help you prepare.

    ✔ Review your credit, experience, and ownership background
    ✔ Talk through available cash or capital
    ✔ Learn what strengths you already have—and what we can help strengthen

  • Step 4: Build Your Business Profile Open or Close

    We’ll help you gather the details needed to tell your business’s story. You’ll never have to guess what to send. We’ll walk you through it all.

    ✔ Business plan and projections (don’t worry, we can help!)
    ✔ Financials, tax returns, or purchase documents
    ✔ Clarity around what lenders need and why

  • Step 5: Submit with Confidence Open or Close

    Now it’s time to officially apply. But you’re not doing it alone. We’ll help package everything with you, submit it, and keep you updated every step of the way.

    ✔ We help the heavy lifting
    ✔ Constant communication. No black holes
    ✔ You'll always know where things stand

Let’s talk about how an SBA 504 loan could work for you.

We’re here when you are, and we’ll be with you the whole way.

MiddleAgedManChecksPhone_AI-1

What you’ll typically need to qualify for an SBA 504 business loan.

Thinking about getting an SBA 504 business loan? If you're considering an SBA loan through First Bank of the Lake, here are the common minimum requirements we’ll look at during the application process:

You Must Meet SBA Eligibility 


To qualify, you'll need to meet the SBA’s standard requirements. This includes operating a for-profit business located in the U.S., being a U.S. citizen or lawful permanent resident, and showing responsible credit and financial history.

Ready to Invest at Least 10%


Most SBA 504 loans require an equity injection of 10% or more. This can come from your own funds or, in some cases, include a portion of seller financing if it meets SBA terms.

A Credit Score of 680 or Higher


We typically look for a personal credit score of 680 or above. This helps us assess your overall financial picture and repayment ability.

Strong Historical Financials


The business  should have at least three years of financial records or tax returns. We like to see stable or growing revenue and positive cash flow, as this speaks to the health and viability of the business.

Some of the best US small businesses partner with us.

Read their stories and see how First Bank of the Lake turned business goals into reality.

Reeds_Moving_500x400

Reed’s Moving

Amount: $3.3MM
Type: SBA 7(a) loan
Time: under 30 days.

WinterPark_500x400

Winter Park Ski Rental

Amount $2.2MM
Type: SBA 7(a) loan
Time: 35 days.

Woof_Gang_500x400

Woof Gang Bakery & Grooming 

Amount $345,000
Type: SBA 7(a) loan
Time:
35 days.

GreenCoatings_500x400

Lifetime Green Coatings

Amount $400,000
Type: SBA 7(a) loan
Time: less than 30 days.

Proven Results Backed by Industry-Leading Expertise   

www.fblake.bankwp-contentuploads202501about-first-bank-of-the-lake-2

At First Bank of the Lake, lending decisions are driven by our team of banking professionals who understand your business. We recruit top talent who apply their extraordinary experience and depth of knowledge to providing first-class service, trusted advice, and the best financial products. Their dedication and commitment are truly inspiring and are the spark that ignites innovation, competition, and expansion. We employ our creativity, understanding, experience and expertise to build the right solutions for you.

First Bank of the Lake understand how essential growing businesses are to fueling local economies and that not all businesses qualify for conventional business loans. That’s why we offer government-guaranteed Small Business Administration (SBA) 7a and 504 loans.

Funded Over
+$1.9B
In SBA Loans Since 2020


Funded Over
2,000
SBA Loans Since 2020


Ranked
Top 5
SBA Franchise Lender*


Funded Over
+$600M
In Franchise Loans Since 2020

SBA 504 Loans: Frequently Asked Questions

An SBA 504 loan is a long-term financing option designed by the U.S. Small Business Administration for small businesses looking to acquire or upgrade significant fixed assets like land, facilities, or equipment, or to refinance eligible debt related to these assets. Key benefits include fixed interest rates, long repayment terms (10, 20, or 25 years), lower down payments compared to traditional commercial loans (typically 10%), predictable monthly payments, and access to SBA resources and guidance. These loans are specifically structured to promote economic development by enabling small businesses to expand their operations.

To qualify for an SBA 504 loan, businesses must be for-profit, U.S.-based, have a net worth of less than $15 million, and an average net income of less than $5 million after taxes for the two years prior to application. Borrowers also need to demonstrate strong management expertise, a viable business plan, and the ability to repay the loan based on past and projected revenues. Additionally, individuals associated with the business must have good character, meaning no felony indictments or financial misconduct. 504 loans are not available for financial speculation, passive income-only businesses, or non-profits.

SBA 504 loans usually follow a 50-40-10 financing structure. In this model, a conventional lender (like First Bank of the Lake) provides 50% of the capital. A Certified Development Company (CDC) provides 40% of the loan, often with fixed interest rates. The borrower is responsible for a minimum 10% down payment. This structure allows businesses to access significant funding with a relatively low initial investment.

Certified Development Companies (CDCs) are non-profit organizations that partner with the U.S. Small Business Administration to facilitate long-term financing for small businesses. Regulated and certified by the SBA, CDCs work with the SBA and local lenders to provide the 40% portion of the 504 loan. Their participation is crucial in offering favorable loan terms and making funding accessible to business owners who might otherwise face challenges securing the necessary financial resources. CDCs are available in every state and many U.S. territories.

SBA 504 loans are specifically designated for the purchase, acquisition, or upgrading of eligible fixed assets. This includes building new facilities, improving existing ones, purchasing land for business purposes, and acquiring new or used machinery and equipment with a useful life of at least 10 years. They can also be used to refinance certain types of debt incurred for purchasing eligible fixed assets.

However, there are strict limitations: 504 loan funds cannot be used for working capital, purchasing inventory, acquiring investor or rental real estate, intellectual property acquisitions, financing consulting services, or most forms of debt refinancing/consolidation unless explicitly permitted under the expanded refinance program.

The SBA 504 loan process involves several steps:

  1. Check eligibility: Ensure your business meets the SBA's requirements.
  2. Prepare for down payment: Set aside the required 10% down payment and account for any fees.
  3. Monitor financial standing: Evaluate current Treasury rates (which influence 504 loan rates) and maintain a good credit report.
  4. Find a lender and CDC: Work with a participating lender (like First Bank of the Lake) that has established relationships with CDCs in your area.
  5. Pre-qualify: Provide initial documentation to determine if you meet basic requirements.
  6. Identify purchases: Finalize plans for the assets you intend to acquire or improve.
  7. Review loan terms: Understand all conditions, rates, and limits before proceeding.
  8. Submit application: Complete and submit SBA Form 1244 along with extensive required documentation, including tax returns, financial statements, business plans, and purchase agreements.
  9. Approval and underwriting: Await review and approval, which can be a lengthy process.
  10. Pay fees and close: Settle upfront and annual service fees, then close on the loan.

The time needed to process and complete a 504 loan can vary significantly, ranging from 60 days to six months or even longer, depending on the completeness of information, third-party reports, and processing times at the lender and SBA.

SBA 504 Green Loan options offer enhanced benefits for small businesses investing in projects that promote energy efficiency or renewable energy. These loans provide higher aggregate loan limits (up to $16.5 million for multiple green projects) and increased individual loan caps ($5.5 million per project, compared to the standard $5 million), while still retaining the favorable fixed CDC interest rates.

To qualify, projects must meet one of the following public policy goals:

  • Reduce energy use by 10% or more.
  • Demonstrate sustainable design that lowers fossil fuel use or environmental impact.
  • Generate clean and renewable energy (solar, geothermal, hydropower, wind, or biomass) where the property produces 15% renewable energy.

While both are SBA-backed loan programs for small businesses, they differ significantly:

  • Intended Purpose: 504 loans are primarily for purchasing/improving fixed assets and eligible refinancing. 7(a) loans are more versatile, also covering working capital, purchasing existing businesses, and broader debt refinancing in addition to fixed assets.
  • Interest Rates: The CDC portion of 504 loans features fixed interest rates. 7(a) loan rates are typically adjustable and tied to the prime interest rate.
  • Loan Amount: Maximum loan amounts are generally capped at $5 million for both, though 504 green loans can go up to $5.5 million per project and $16.5 million in aggregate.
  • Loan Duration: 504 loans offer longer terms (10, 20, or 25 years). 7(a) terms are typically 10 years for working capital/equipment and 25 years for real estate.
  • Down Payment: 504 loans require a mandatory 10% down payment. 7(a) down payment requirements vary.
  • Collateral/Risk: 504 loans are primarily secured by the assets being purchased. 7(a) loans often require borrowers to put up their own collateral to mitigate lender risk.

Do you have more questions about how the SBA 504 program works?

Cut through the confusion with our free 29-page guide. 

sba-504-loans-mockup-1

Download your free copy.

All loans are subject to credit approval. Restrictions and limitations may apply. First Bank of the Lake does not provide tax, legal or investment advice. All decisions concerning these matters should be made in conjunction with your professional advisors.

*Top 1% of SBA 7(a) lenders by approval amount during SBA fiscal year 2023. Top 5 SBA franchise lender by approval count during SBA fiscal years 2024 and 2023.
Approved to offer SBA loan products under SBA's Preferred lenders Program.