SBA 504 Loan at Old National Bank

Unlock long-term, fixed-rate financing tailored for business growth with the SBA 504 loan program available through Old National Bank. Designed specifically for established small businesses pursuing major fixed-asset investments, the SBA 504 offers low down payments, extended repayment terms, and predictable rates that make expansion, acquisition, and modernization projects more attainable and financially sustainable.

Who benefits from an SBA 504 loan?

The SBA 504 is ideal for small businesses seeking to purchase, construct, renovate, or upgrade fixed assets that will support long-term operations. Typical borrowers include business owners expanding their facilities, acquiring owner-occupied commercial real estate, modernizing production lines, or investing in long-lived equipment. If you want to preserve working capital while investing in assets that appreciate or support revenue growth, this product is a strong fit.

Key advantages

• Low down payment: Keep more cash on hand—SBA 504 financing often requires a relatively small borrower contribution compared with conventional financing.
• Long-term, fixed-rate financing: Enjoy predictable monthly payments with terms that commonly stretch to 10, 20, or 25 years for real estate and equipment, shielding your business from interest rate volatility.
• Preserve working capital: Because down payments can be lower and amortization longer, you can allocate cash to operations, inventory, and strategic initiatives.
• Competitive rates: SBA 504 rates are typically competitive versus other long-term financing, especially for fixed-rate real estate financing.
• Finance growth-related costs: Use proceeds to acquire land, purchase or construct buildings, renovate facilities, or buy heavy machinery and equipment with useful lives matching loan terms.

Typical structure of financing

SBA 504 financing is structured to leverage both private bank lending and a CDC (Certified Development Company) loan backed by the SBA. This blended approach reduces borrower equity requirements and extends amortization. Old National Bank collaborates with CDC partners and the SBA to coordinate approvals, ensuring a seamless lending experience and integrated closing.

Eligible uses

• Purchase of owner-occupied commercial real estate
• New construction or expansion of facilities
• Building renovation, modernization, or site improvements
• Acquisition of long-lived machinery and equipment
• Purchase of land and related soft costs when part of a fixed-asset project

Basic eligibility and borrower profile

SBA 504 borrowers typically must meet the SBA’s small business size standards and demonstrate the ability to repay the loan. Eligible applicants are generally for-profit businesses that operate in the United States and seek financing for fixed-asset projects. While each application is unique, successful candidates typically show a stable operating history, a realistic business plan, and adequate cash flow to support loan payments.

Documentation and application checklist

To streamline the underwriting process, gather the following materials when preparing your SBA 504 application. Requirements vary by project and borrower, but common items include:

• Business financial statements (recent years), including profit & loss and balance sheets
• Federal tax returns for the business and possibly principals
• Interim financial statements and accounts receivable aging, if applicable
• Personal financial statements for owners with significant ownership
• Business plan or detailed project summary describing use of funds and anticipated benefits
• Purchase agreements, construction bids, cost estimates, and appraisal information for real estate projects
• Equipment cost quotes or invoices for machinery purchases
• Organizational documents such as articles of incorporation, operating agreements, and business licenses

Application and approval process

The SBA 504 process typically follows these steps: initial consultation and project assessment, submission of application and supporting documents, underwriting by the lender and CDC partner, appraisal and environmental review (for real estate), and closing. Old National Bank provides guidance through each phase—helping package the application, coordinating required third-party reports, and working with CDC partners to reach timely decisions.

How Old National Bank supports your project

• Expert guidance: Experienced small-business lenders walk you through program specifics, eligibility, and structuring options.
• Coordinated service: We collaborate with CDCs and the SBA on documentation, appraisals, and closing logistics to minimize delays.
• Customized financing plans: We evaluate your business goals and craft a financing structure that balances cash flow, equity, and growth needs.
• Transparent communication: Expect clear explanations of fees, timeline expectations, and ongoing borrower responsibilities.

Comparing SBA 504 with other business financing

Unlike short-term working capital loans or lines of credit, SBA 504 is purpose-built for long-lived assets and offers fixed rates and long amortizations. Compared with SBA 7(a) loans, 504 financing is often the better option for owner-occupied commercial real estate or substantial equipment purchases because of its structure and cost benefits for those asset types.

Important considerations

• Project eligibility must align with SBA guidelines; certain business types and uses are restricted.
• Environmental and appraisal requirements apply to real estate transactions and can affect timelines and approvals.
• Ongoing reporting and compliance obligations may be required as part of the SBA-backed financing arrangement.

Is an SBA 504 loan right for your business?

If your business needs long-term, stable financing for real estate or major equipment and you want to conserve working capital while locking in predictable payments, the SBA 504 offering through Old National Bank can be a powerful tool. With structured, collaborative lending that aligns private and public resources, you can unlock projects that support growth, competitiveness, and long-term value.

Contact your local Old National Bank relationship manager to discuss eligibility, project feasibility, and next steps for pursuing SBA 504 financing. Our team can help evaluate your options and guide you through a structured path from planning to closing.

Address Bank: Chicago, Illinois Evansville, Indiana, U.S.
Bank: Old National Bank
Headquarters: Evansville, Indiana
Products: Loans & Credit
Type: SBA 504 Loan