SBA 504 Loan

Is your business dream limited by the need for land, space or fixed equipment?

Whether you are starting a business from the ground up, or improving on what you already have, Small Business Administration (SBA) 504 loans can be ideal to help you grow your business. These loans are a cooperation between the SBA, a commercial lender, and you. You benefit because the program allows for less capital investment from you, with loan financing or refinancing at lower, long-term, fixed rates.

SomerCor helps you obtain the SBA 504 loan, which provides financing or refinancing for up to $5.5 million of your overall loan – as much as 90% of the total project cost (see the pie charts below).

Have questions? Contact us here

August 2022

25 Year 4.98%  |  20 Year 4.89%

Rates include monthly servicing fees to CDC, SBA, and central servicing agent; based on SBA FY22 fees. SBA 504 refi rates are approximately 1 basis point higher than debenture pricing noted above.


  • Purchase commercial real estate
  • Build or renovate commercial property
  • Buy equipment, machinery and fixtures
  • Refinance debt for commercial property and equipment
  • Pay eligible soft costs and professional fees


  • Lower down payment
  • Up to 90% financing
  • Long-term, below-market fixed interest rates
  • Refinance with potential 20% cash-out
  • Predictable monthly payments
  • No balloon payments


  • Owner-occupied commercial real estate in Illinois
  • At least 51% applicant occupancy (60% for new construction)
  • For-profit business
  • Under $15 million in tangible net worth
  • Prior 2 years average after-tax net income under $5 million
  • Able to meet the down-payment requirement
  • Good credit history


  • Manufacturing, industrial and commercial
  • Hotels, gas stations and storage facilities
  • Business and medical office buildings
  • Most franchises


Existing business, general purpose building
New business or single purpose building
New business in single purpose building



Business wants to buy, expand or refinance a commercial building or heavy equipment


Works with SomerCor to ensure eligibility and project structure


SomerCor underwriting process for internal approval


Project sent to SBA for loan authorization; typically subject to acceptable appraisal and environmental reports


Bank closing on total project financing including SBA portion


SBA closing (quick for turn-key: approximately 60 days after all project costs incurred and/or construction complete)


SBA debenture funding approximately 30 days after SomerCor closing. Once the project funds, the project will transfer to the SomerCor servicing department

Dream it, Do it.

Find everything you need to start on a SBA 504 loan right here:

504 SBA Personal Finance Statement

504 SomerCor Loan Application Checklist

504 Flyer

504 Refi Flyer

Questions? Reach out to us!

Reach out to a loan originator today if you have any questions or are ready to start the SBA 504 process.

Margaret Griffin

EVP, Chief Lending Officer
(312) 360-3320

Elisabeth Williams

VP, Loan Officer
(312) 360-3302

Eric Bacon

VP, Loan Officer
(312) 360-3335