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SBA 504 loan calculator

A 50/40/10-style split, with the 15 and 20 percent contribution cases, and payments from rates you type.

Reviewed by Craig Hoebing, AZ Commercial Mortgage Banker CMB-1047342 · Updated October 2026

13 CFR 120.910 applies the contribution percentage to project cost and excludes administrative costs from that base.

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Dollars you type. Added only to the 504 piece. This page does not decide which costs are eligible, and it does not insert an SBA fee.

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Borrower contribution case

Structure

Enter a project cost and choose a contribution case.

Payments from rates you type

The bank or other SBA lender sets this rate. Type the rate you want to test.

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Often longer than the bank's maturity. This payment uses the amortization, not a balloon.

Set when the debenture is sold. Type the rate you want to test. This page does not publish one.

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Debenture term

Property NOI or business cash flow, whichever number you want divided by the two recurring payments. Not a CDC minimum.

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Two payments

The structure has to be calculated before the payments.

The debenture payment fully amortizes the 504 piece over the term you chose. The bank note can have its own balloon, prepayment, and reset. Those are not in this payment. The debenture prepayment factor is on the prepayment estimator.

Sources for the structure

  • At least 10 percent of project cost, excluding administrative costs. At least 15 percent if the borrower has operated for two years or less, or if the project is the acquisition, construction, conversion, or expansion of a limited or single-purpose building. At least 20 percent when both of those conditions apply.

    13 CFR 120.910, Borrower contributions. Retrieved October 6, 2026.

  • Third-party loans must total at least as much as the 504 loan. They must total at least 50 percent of project cost when the business has operated for two years or less or the project is a limited or single-purpose asset.

    13 CFR 120.920, Third Party Lender participation. Retrieved October 6, 2026.

  • Generally, a 504 loan may not exceed 40 percent of total project cost plus 100 percent of eligible administrative costs, and a 504 loan must not be less than $25,000. SBA may authorize a higher project percentage for good cause.

    13 CFR 120.930, Amount. Retrieved October 6, 2026.

  • SBA describes a typical project as a private-sector senior lien covering up to 50 percent, a CDC loan covering up to 40 percent, and borrower equity of at least 10 percent.

    SBA, CDC/504 loan program for lenders. Retrieved October 6, 2026.

  • SBA lists 10-, 20-, and 25-year maturity terms for the 504 loan. On that same page, retrieved this date, SBA stated a maximum 504 loan amount of $5.5 million. Caps change. The CDC applies the cap in effect for the file.

    SBA, 504 loans. Retrieved October 6, 2026.

How to read the split

The familiar picture is 50 percent third party, 40 percent CDC, and 10 percent borrower. SBA's lender page, retrieved October 6, 2026, describes that typical project. The regulation is a floor and a ceiling, not a promise that every file closes at those exact shares. When the contribution floor rises to 15 or 20 percent, this calculator keeps the third party at 50 percent and reduces the CDC share. That is the usual way to meet 13 CFR 120.920, which requires third-party loans of at least 50 percent of project cost in those cases, and at least as large as the 504 loan in every case.

Occupancy, job creation, and which costs may be financed sit with the CDC and SOP 50 10. The structure in prose, including the debenture term of 10, 20, or 25 years, is the SBA 504 Arizona quick reference. The arrangement page is Arizona SBA 504. How 504 differs from a single guaranteed loan is 7(a) versus 504. The debenture prepayment factor, from a rate you type, is the prepayment estimator.

Owner-user commercial property that does not use a debenture is discussed on Arizona owner-occupied financing. Sizing a conventional loan from income you type is the commercial loan rates and calculator.

Questions

Who makes an SBA 504 loan?
A third-party lender, often a bank, makes the first mortgage. A certified development company makes the 504 loan, funded by a debenture that SBA guarantees. Capital Market Funds arranges the comparison through those parties. It is not the lender and not the CDC.
Where do the 10, 15, and 20 percent contributions come from?
13 CFR 120.910, retrieved October 6, 2026. The contribution is at least 10 percent of project cost excluding administrative costs, at least 15 percent for a newer business or a limited or single-purpose property, and at least 20 percent when both apply. The calculator uses those floors. A CDC can require more.
Does this calculator quote a 504 rate?
No. You type the third-party rate and the debenture rate. The debenture rate is set when the debenture is sold. Capital Market Funds does not publish either rate.

Arizona SBA 504 · 504 quick reference · 7(a) versus 504 · SBA 7(a) calculator · Prepayment estimator · Commercial loan rates and calculator · All tools