The SBA 504 program pairs a bank loan with a CDC debenture to deliver stable, long-term funding for owner-occupied real estate and heavy equipment. Mountaintop Capital Partners LLC runs the process end-to-end so you can close with confidence.

What is an SBA 504 loan?

An SBA 504 structure typically combines a senior bank loan, a CDC second position debenture backed by SBA, and a borrower equity contribution. The result is high leverage with a long fixed rate on the CDC portion and bank terms sized to your cash flow. Proceeds are intended for owner-occupied real estate, major renovations, ground-up construction, or long-life machinery. Working capital, inventory, and most goodwill are not eligible uses.

Why choose 504 for Your Project

• High leverage: Typical structures finance up to 90 percent of total project costs for eligible assets.
• Rate stability: The CDC debenture carries a long fixed rate with fully amortizing payments.
• Preserve cash: Lower equity outlay helps reserve liquidity for hiring, marketing, and ramp-up.
• Aligned term: Bank and CDC components are sized to the useful life of the asset.
• Growth friendly: Ideal for buying your building, expanding a plant, or adding production lines.

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Eligible Uses and Occupancy

• Purchase or build owner-occupied commercial real estate, plus soft costs and improvements
• Refinance qualified owner-occupied property and equipment under program rules
• Purchase, install, or upgrade heavy equipment with long economic life
• For real estate, your operating company must occupy a majority of the space after completion
  Final eligibility is determined by SBA, the CDC, and the bank.

How a 504 Deal is Structured

Typical example:

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• Bank first mortgage sized to about half of project costs
• CDC second position debenture sized to a significant portion of the remainder
• Borrower equity for the balance, with higher equity for startups or special-use properties
  Exact ratios, terms, and fees depend on SBA rules, property type, and risk profile.

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Process We Run for You

• Discovery and sizing to confirm eligibility, project costs, and sources and uses
• Term sheets from the bank and CDC with clear timelines and documentation lists
• Underwriting and approvals including appraisal, environmental, and SBA submissions
• Closing and funding with coordinated bank and CDC closings and escrow management
• Post-close servicing for draw management, 504 debenture funding, and compliance

What You Will Need

• Organizational documents, ownership chart, and IDs for principals
• Last 2 to 3 years financial statements and tax returns, plus YTD statements
• Personal financial statements and resumes for guarantors
• Project budget, plans, permits, and construction contract if applicable
• Real estate items: purchase agreement, rent roll, leases for any third-party tenants
• Appraisal and environmental reports as required by the bank and CDC

Why Mountaintop Capital Partners?

• Nationwide CDC and bank network for faster decisions and competitive structures
• Wall Street trained team that navigates underwriting, third-party reports, and SBA requirements
• Single senior contact coordinating lender, CDC, counsel, and escrow through close
• Encrypted client portal, rigorous KYC and AML, and transparent economics from start to finish