• Commercial Real Estate & Leasehold Improvements

    Purchase or lease; we can help with your business expansion

    read more
  • Equipment & Machinery

    Equipped to help your financing needs

    read more
  • Debt Refinance

    Refinance debt on existing eligible fixed assets

    read more
  • Renewable Energy

    Go Green with HEDCO LDC

    read more
  • Success Stories

    Proud to assist small businesses for 30 years

    read more

504 Loan Program

The SBA 504 Loan Program partners the SBA with a third-party lender, and the borrower to finance the acquisition of Small Business fixed assets that have a useful life of at least 10 years.  The 504 loans are funded monthly via a bond (debenture) the SBA sells in the private capital market.


  • Low Down Payment – As low as 10% helps preserve cash reserves for the business
  • Long Repayment Terms– 10, 20 or 25-year fully amortized loan helps businesses to manage expenses
  • Competitive Fixed Rates – Fixed rates for the life of the loan helps reduce interest risk to the business. Rates are locked in at time of SBA funding.
  • Debt Refinancing – Eligible debt may be refinanced (additional qualifications/fees apply)


The standard 504 loan structure is:

  • BORROWER  –   Contributes a Minimum of 10% of the total project cost
  • HEDCO LDC  –  Finances up to 40% of the total project cost
  • LENDER          –  Finances 50% of the total project cost

Additional down payment by the borrower is required if the business has been operating for less than 2 years, including change in ownership and/or the real property is considered a limited/special-purpose property.  Contact HEDCO for additional information. 


The borrower’s equity can be from personal or business cash, equity in the project land previously acquired, loan on personal assets or seller carry back note (some restrictions apply).   


The lending limits for the 504 loan amount:

  • $5 million – All eligible projects
  • $5.5 million per project – Renewable energy/green energy projects (i.e. photovoltaic systems, etc.) or energy efficient proejcts that result in a 10% reduction in energy consumption or manufacturing projects

How it works:  The lender initially finances their portion and the HEDCO LDC- SBA 504 loan’s portion of the project cost. Upon completion of the project (including the filing of certifications/notices and the lapse of the waiting period without any incidents) HEDCO LDC will pay down the lender the 504 loan portion. The borrower will then have two separate loans; one with the lender, and another with the SBA since the terms differ.