For New Customers

What 504 Loans Can Do For You

An SBA 504 loan is a partnership between a private lender, Self-Help, and Small Business Administration to help you finance long-term assets. The SBA 504 Loan program can be one of the best financial options available for you. A private lender, usually a bank, will provide you with interim financing for up to 90% of the total project costs. At the end of the entire financing of the loan program, you will have two permanent mortgages: one with your lender for 50% of total project costs and one with Self-Help which will provide up to 40% of the total project. Hence, your contribution to the entire project will be the remaining portion after the two permanent mortgages.

For the latest rates, please visit our Current Rates section.

Advantages of getting a SBA 504 loan:

• Low down payment (as little as 10%) doesn’t deplete cash on hand – allowing you to conserve working capital, grow faster and create more jobs
• Longer repayment terms, reducing your monthly payments
• Fixed interest rate, usually at a below-market rate, means no future rate fluctuations

Maximum sizes of the 504 loan:

• $1.5 million for standard 504 loans
• $2.0 million for loans that meet SBA public policy goals (woman-, minority-, veteran-owned or rurally located businesses)
• $4.0 million for loans to small manufacturing businesses

Eligible Borrowers:

• For-profit corporations, LLCs, partnerships, or proprietorships
• Financing project located in North Carolina
• Net worth less than $7.5 million and average net profit not above $2.5 million in last two years
• Project creates new jobs
• Primary occupant of the property financed

Eligible Projects:

• Owner-occupied real estate:
•  Build from scratch
•  Buy existing building – including renovations
•  Expand an existing building
• Heavy-duty equipment or machinery: minimum 10-year useful life
• Related soft costs (architect fees, construction interest, legal fees (surveys, appraisal, etc.)
• "Combo" projects: real estate plus equipment

If you’re interested in applying for an SBA 504 Loan with Self-Help, please visit our Apply section to get started with Borrower’s Pre-qualification Application. 

If you need more information or have questions, contact Jim Overton at (919) 956-4473 or e-mail us.

You can also contact a SBA 504 Loan Officer at a Self-Help office (PDF) near you.