Software
Business Finance
SBA
Valuation
Practice Finance
Professional Services
Industrial Services
Guides

Industry Guides

CPA Firm GuideDental Practice Guide409A Valuation GuideHVAC GuideLegal Firm GuideManufacturing GuideMedical Practice GuideOptometry GuideOrthodontist GuidePlumbing GuideVeterinary Guide

Financing Guides

A/R Aging Report Guide1031 Exchange GuideLOC GuideSBA 7(a) GuideSBA 504 GuideSection 179 Guide
Articles

Selling a Business

Setting an Asking PriceUsing a Business BrokerSelling a Business During DivorceSelling a Failing BusinessTransferring Intellectual PropertyPreparing an Online Business for SalePreparing for Sale, Two Years OutSelling a Business QuicklyWriting a Selling MemorandumSelling a Business Step by StepSelling a Business With DebtChanges Worth Making Before Selling

Valuation

What Is Enterprise ValueSeller's Discretionary EarningsValuing a Business Accurately

Buying & Financing

Financing an AcquisitionWriting a Financial Plan

Modelling & Operations

Building a Business ModelRisk Management for a Small Business
Templates

Business Templates

Client Service AgreementIndependent Contractor AgreementNon-Disclosure Agreement (NDA)LLC Operating AgreementEmployment AgreementProfessional Invoice TemplateBusiness Loan AgreementBuy-Sell AgreementLetter of Intent (LOI)Partnership Agreement
Sign in

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.

✓
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.
✓
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.
✓
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.
✓
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.
✓
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.
✓
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.
Two-tranche structure

SBA 504 Loan Calculator

Bank first mortgage (50%) + CDC debenture (40%) + borrower equity (10%+). Separate amortization periods for each tranche with balloon payment analysis.

Bank 50%
CDC 40%
Down 10%

Combined Monthly

$23,127

Bank + CDC payments

$277,520/yr

Bank Payment

$15,498

8.50% var | 10yr term

Fully amortizing

CDC Payment

$7,628

6.45% fixed | 20yr term

Fees: $27,221

DSCR

1.01x

NOI / annual debt service

Below min

Blended Rate

7.6%

Principal-weighted nominal

vs bank 8.5% / CDC 6.5%

Debt Constant

12.2%

Annual debt service per $1 borrowed

nominal 7.6%

Loan Summary

Bank -- 1st Mortgage

$15,498/mo

$1.25M at 8.50% | 10yr term

Variable rate
CDC -- SBA Debenture

$7,628/mo

$1.00M at 6.45% fixed | 20yr term

Fixed for life
Borrower Equity

$250K

10% of total project | $2.50M total cost

Cash at closing
FieldBankCDCCombined
Loan amount$1.25M$1.03M$2.28M
% of project50.0%40.0%90.0%
Interest rate8.5% (var)6.5% (fixed)7.6% blended
Term (maturity)10yr20yr20yr max
Amort period10yr20yr--
Monthly payment$15,498$7,628$23,127
Annual debt svc$185,979$91,542$277,520
Balloon at maturityNoneNoneNone
SBA 504 estimate -- not a commitment to lend. Rates and program terms change. November 5, 2026
© 2026 ExitAdviser.com —Results are estimates for informational purposes only. Not financial, tax, or legal advice. Consult qualified professionals before making financial decisions.