How is an SBA 504 loan structured?

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

You can view more structure examples and information here.


504 Loan Structure - White

**New businesses and special purpose properties may be subject to a structure change.

**New businesses that have been in operation for less than 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)