SBA 504 Loan in United Community Bank
SBA 504 Loan at United Community Bank
The SBA 504 Loan offered through United Community Bank is a long-term, fixed-rate financing solution designed to help small and growing businesses acquire major fixed assets that drive expansion and job creation. Built around a public-private partnership, the 504 program combines bank financing with a Certified Development Company (CDC) loan that is partially guaranteed by the U.S. Small Business Administration. This structure makes it possible for business owners to access affordable capital while preserving working capital and supporting strategic investments in property, facilities and equipment.
Who this loan is for
This product is aimed at eligible for-profit small businesses that need financing for owner-occupied commercial real estate, renovation and construction projects, or heavy equipment with useful lives that match long-term financing. Typical borrowers include manufacturing companies, professional service firms, healthcare providers, retailers, hospitality operators and other businesses planning expansion, relocation or substantial asset upgrades.
Typical uses
- Purchase of land and buildings for owner-occupation
- Construction of new facilities or significant renovations
- Purchase of long-term machinery and equipment
- Refinancing of debt in conjunction with job retention or growth initiatives (subject to program rules)
- Energy-efficient improvements and other projects that reduce operating costs
Key benefits
- Attractive down payment requirements compared with conventional loans, helping preserve cash
- Long-term, fixed-rate financing from the SBA-backed portion, reducing interest rate risk
- Lower monthly payments through extended amortization, improving cash flow
- Access to larger loan amounts for projects that materially contribute to business growth
- Potential for combined first-lien bank financing and second-lien CDC financing to structure a complete solution
How the financing is typically structured
The common SBA 504 structure pairs a conventional lender (such as United Community Bank) with a Certified Development Company. A typical split is approximately 50% provided by the bank as the first mortgage, 40% funded by the CDC and backed by the SBA as a second mortgage, and approximately 10% contributed by the borrower as down payment. Variations to this structure may apply based on project specifics, borrower credit, and SBA program rules, including higher borrower equity for special-purpose properties or startups.
Terms and repayment
The SBA 504 portion is known for offering long amortization periods that match asset life—commonly 10, 20 or 25 years—resulting in predictable, fixed payments for a substantial portion of the financing. The first-lien bank portion typically has market-based terms, which may include amortization and payment schedules aligned with the CDC portion to simplify monthly cash flow. United Community Bank works with borrowers to identify a repayment plan that suits the project and business cash flow.
Eligibility basics
- Businesses must meet SBA small business size standards and be for-profit operating entities
- Primary purpose of the loan must be the acquisition of fixed assets for business use
- Owner-occupancy requirements apply to real estate—occupancy thresholds depend on property type
- Borrowers must demonstrate sufficient cash flow, management capability, and a viable business plan
- Personal guarantees and collateral requirements are typically part of the credit package
Application process
- Initial consultation to review eligibility, project scope and financing options.
- Prequalification and term estimate based on financials and project details.
- Joint submission with a partnering Certified Development Company for the SBA-backed portion.
- Underwriting of both bank and CDC portions, including credit review, appraisal and environmental assessment.
- SBA authorization for the CDC loan and final loan documentation.
- Closing and funding, followed by project implementation and construction monitoring when applicable.
Common documentation requirements
- Business financial statements and federal tax returns
- Personal financial statements and personal tax returns for principals
- Business plan and financial projections
- Purchase agreements, construction contracts and equipment invoices
- Appraisals, environmental reports and title documents as required
Costs and fees
Borrowers should expect typical closing costs such as appraisal and environmental fees, CDC processing fees, title and recording charges, and standard bank closing expenses. The SBA-backed CDC portion may include issuance and servicing fees. United Community Bank will provide a clear estimate of fees during the application process so borrowers can evaluate the full cost of financing.
Considerations and risks
While SBA 504 financing offers compelling advantages for asset-based growth, borrowers should be aware of program requirements and timelines. The process involves coordination between the bank, CDC and SBA which can extend approval times compared to simple commercial loans. Borrowers should also be prepared for collateral pledges and personal guarantees. Special-purpose properties, startups and certain industries may face higher equity requirements or additional underwriting scrutiny.
Why choose United Community Bank for SBA 504 lending
United Community Bank brings local market knowledge, commercial lending expertise and a commitment to helping small businesses access the right financing mix. By partnering with Certified Development Companies and leveraging the SBA 504 program, the bank can deliver structured solutions that balance affordability and long-term stability—supporting businesses that seek to invest in property, equipment and job-creating projects.
Frequently asked questions
Can the 504 loan be used for tenant-occupied property? Tenant-occupied projects are evaluated on a case-by-case basis and must meet SBA occupancy and eligibility requirements.
Is the interest rate fixed? The CDC (SBA-backed) portion is typically long-term fixed rate, while the bank portion may carry a market-rate structure. United Community Bank can align terms for predictable payments.
How long does approval take? Timing depends on project complexity, documentation completeness and coordination with the CDC and SBA; a clear timeline will be provided once the application is underway.
Next steps
If you are planning a major investment in real estate, construction or long-term equipment and want to explore how SBA 504 financing can support your goals, United Community Bank can guide you through eligibility assessment, structuring options and the application process. Detailed project information and financial documentation will help accelerate underwriting and deliver an informed financing recommendation tailored to your business.
Address Bank: Greenville, South Carolina, United States
Bank: United Community Bank
Headquarters: Greenville, South Carolina
Products: Loans & Credit
Type: SBA 504 Loan
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