In most cases, SBA 504 loans are structured in a 50/40/10 model:
- 50% contributed by a participating bank or lender
- 40% by the SBA and Dakota Business Lending
- 10% by the borrower
**New businesses and special purpose properties may be subject to a structure change.
**New businesses that have been in operation for < 2 years require an addition 5% equity injection (50-35-15)
**Special purpose properties require an additional 5% equity injection (50-35-15)
**New businesses AND special purpose properties require an additional 10% equity injection (50-30-20)