How to Use the SBA 504 Loan Calculator

The SBA 504 program is unique because it combines two separate loans:

• • A senior loan from a bank or private lender covering up to 50% of the project cost
  • A junior loan funded by the SBA (through a Certified Development Company) covering up to 40%
  • A borrower contribution—usually as little as 10%

To calculate your estimated monthly payments:

1. 1. Enter your total project cost
   2. Select your down-payment %
   3. Choose your interest rates for the Senior 1st mortgage loan
   4. The Junior 2nd Mortgage loan interest rate is published each month by the SBA and is fixed for all SBA 504 loans
   5. Select your loan terms (typically 10, 20, or 25 years)
   6. View your estimated monthly payments and amortization schedule

Why Use Our SBA 504 Loan Calculator

• • Understand how SBA loans work — See how the two-loan structure impacts your payments
  • Plan your cash flow — Estimate monthly payments before applying
  • Compare financing options — See how the SBA 504 stacks up against other SBA loans, like the SBA 7(a) program
  • Prepare for pre-qualification — Determine whether your business can afford the payments estimated by the SBA 504 loan calculator

How SBA 504 Loans Work

The SBA 504 loan program is designed to help small businesses buy, build, or expand commercial real estate and major fixed assets with affordable, long-term financing. Here’s why thousands of small business owners choose the 504 program:

• • Lower down payments → As little as 10% borrower equity required
  • Competitive interest rates → Fixed SBA-backed rates and lower-risk bank financing
  • Longer repayment terms → Up to 25 years for real estate projects
  • Access to larger loan amounts → Ideal for projects $500,000 to $20+ million

By using our calculator, you’ll see exactly how the structure impacts your monthly payments and total financing costs—helping you make smarter decisions before applying.