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United States only. These are US federal program under SOP 50 10 8, priced off two different US benchmarks: SBA 7(a) and Express track the WSJ Prime Rate plus a spread, while the 504 debenture prices off US Treasury yields when it sells, not when you sign.

Tax, Caps, fees, eligibility and the Section 179 limits all come from US statute and change with it. Outside the US the arithmetic still holds; the program, benchmarks and limits do not.

Current as of August 2026. Check the SOP before relying on a figure.
SBA 504 Loan Program

Two-tranche financing for
real estate & equipment

The SBA 504 splits project financing into two loans: a conventional bank first mortgage (50%) and a fixed-rate CDC debenture (up to 40%). Unlike the 7(a), the CDC tranche carries a long-term fixed rate tied to the 10-year Treasury -- making it attractive for owner-occupied commercial real estate and major equipment. This calculator models both tranches simultaneously: combined monthly payment, blended rate, DSCR, all four CDC fees, and full amortization for each piece.

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Two-tranche payment modeling — Bank first mortgage and CDC debenture have different rates, terms, and amortization periods. The calculator computes each separately and shows a combined monthly obligation.
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Fixed CDC rate vs. variable bank rate — The CDC debenture rate is fixed at closing and tied to the 10-year Treasury. Model the bank rate separately and see the blended effective rate across both tranches.
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All four CDC fees modeled — SBA 504 carries four CDC-side fees: funding fee, servicing fee, guarantee fee, and underwriting fee. All are included in the true APR and total cost of borrowing.
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DSCR across combined debt stack — Enter annual NOI or EBITDA to compute Debt Service Coverage Ratio across both tranches combined. Flags whether you clear the typical 1.25x minimum.
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Project cost and equity allocation — Enter total project cost and equity injection percentage. The calculator allocates the bank and CDC tranches automatically and shows net proceeds after fees.
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Side-by-side vs. SBA 7(a) — Compare the 504 structure against financing the same project with a single SBA 7(a) -- including rate, monthly payment, and total cost of borrowing.
Bank First MortgageCDC DebentureFixed SBA RateBlended RateDSCRCDC FeesProject CostEquity InjectionTrue APRvs SBA 7(a)
504 capital stack
Bank first50% of project, or more when the debenture is limited on a large deal.
CDC debenture40% standard, 35% or 30% when equity rises. Fixed SBA rate tied to 10yr Treasury.
Borrower equity10% standard, 15% for a new business or special-purpose property, 20% for both.
Key inputs
Project costTotal cost of acquisition or construction.
Project typeSets the bank / debenture / equity split. The bank first mortgage holds 50%.
Bank rateFirst mortgage rate and term set by the lender.
CDC rateFixed debenture rate set by SBA based on current Treasury yields.
NOI / EBITDAAnnual income used to calculate DSCR across both tranches.
Quick facts
RE onlyProceeds cannot be used for working capital, inventory, or goodwill.
Owner-occProperty must be 51%+ owner-occupied (60% for new construction).
For informational purposes only. Not financial or lending advice. CDC rates change monthly -- confirm current debenture rates with a Certified Development Company.
© 2026 ExitAdviser.com —Results are estimates for informational purposes only. Not financial, tax, or legal advice. Consult qualified professionals before making financial decisions.