SBA 504 Loan at Atlantic Union Bank

The SBA 504 Loan program at Atlantic Union Bank is designed to empower established small businesses to grow with confidence. Combining long-term, fixed-rate financing with low down payment requirements, this program helps business owners invest in major fixed assets—such as land, buildings, and long-term machinery—while preserving cash and protecting working capital. Atlantic Union Bank pairs local relationship banking expertise with the proven structure of the SBA 504 program to deliver financing that supports meaningful, sustainable expansion.

Who benefits from an SBA 504 loan?

The SBA 504 loan is ideal for small to mid-sized businesses that need capital for real estate or equipment purchases, construction, or large-scale renovations. Typical borrowers include manufacturers, commercial property owners, medical practices, professional services firms, retail businesses, and franchise owners who plan to stay in their local markets and seek to build a long-term asset base.

Key features and advantages

• Low down payment: Preserve cash with down payments that are typically lower than conventional commercial loans, helping you maintain liquidity for operations and growth.
• Long-term, fixed interest rates: Benefit from competitive fixed-rate financing for long-lived assets, which reduces interest-rate risk and simplifies budgeting.
• Large loan amounts: Finance substantial projects that might be difficult to cover with purely conventional financing.
• Flexible use of proceeds: Use funds for land acquisition, construction, building purchase, long-term equipment, and improvements—allowing comprehensive project financing.
• Structure designed for stability: The model combines a bank loan with a CDC-backed second mortgage to maximize funding while sharing risk and lowering borrower costs.
• Local decision-making: Atlantic Union Bank offers relationship-driven guidance, combining SBA program expertise with knowledge of regional markets and long-term client needs.

Typical loan structure

SBA 504 financing generally involves three parties: the borrower, a participating lender (such as Atlantic Union Bank), and a Certified Development Company (CDC). The bank usually provides a first mortgage covering a portion of the project, the CDC finances a second mortgage backed by the SBA for a significant portion, and the borrower supplies a modest down payment. This collaboration reduces the borrower’s initial capital requirement while enabling long-term, fixed-rate financing for the financed portion.

Eligible uses of proceeds

Funds can be applied to a range of asset-based investments that strengthen the business’s infrastructure and long-term competitiveness, including:

• Purchase of land and existing buildings
• Construction of new facilities
• Renovation, expansion, or conversion of existing facilities
• Purchase of long-life machinery and equipment
• Refinancing certain debt related to major fixed-asset projects under qualifying conditions

Qualifications and eligibility

Eligibility is designed for small businesses meeting SBA size standards and operating for profit. Additional considerations include the project’s job creation or community impact potential, the business’s credit history and cash flow, and the owner’s investment in the project. Atlantic Union Bank’s lending professionals will assess financial statements, business plans, and project details to determine qualification and structure the most advantageous financing package.

Application and approval process

1. Initial consultation: Discuss your project with an Atlantic Union Bank commercial lender to evaluate fit and structure options.
2. Preliminary documentation: Provide financial statements, tax returns, business and personal histories, and project estimates.
3. Credit and underwriting: The bank performs underwriting and collaborates with a CDC and SBA to finalize the second-lien financing portion.
4. Approval and closing: Once approvals are in place, the transaction moves to closing and funding according to the agreed timeline and disbursement schedule.
5. Project execution and monitoring: Funds are used to complete the project, with the bank and CDC supporting oversight as required by program guidelines.

Tips to strengthen your application

• Prepare clear, realistic project budgets and timelines.
• Maintain organized financial records and up-to-date tax returns.
• Demonstrate sustainable cash flow projections to cover debt service and operations.
• Show owner equity and commitment to the project to reinforce credibility.
• Be ready to explain how the investment will create jobs, improve community value, or increase business resilience.

Why choose Atlantic Union Bank for SBA 504 lending?

Atlantic Union Bank brings a relationship-first approach to SBA 504 lending. Clients benefit from seasoned commercial lenders who understand local markets and long-term business needs, plus experienced coordination with Certified Development Companies and SBA processes. The bank emphasizes transparent pricing, responsive underwriting, and tailored solutions that align with each borrower’s growth strategy.

Final considerations

An SBA 504 loan through Atlantic Union Bank is a powerful tool for business owners looking to invest in durable assets while managing upfront costs and interest-rate exposure. Whether you are expanding facilities, acquiring property, or investing in critical equipment, this program offers a reliable financing path that supports sustainable growth. Speak with a commercial lending specialist to explore how SBA 504 financing can be structured to meet your project goals and long-term plans.