SBA 504 Loan at Banc of California

The SBA 504 Loan from Banc of California is a purposeful financing solution designed to help growing businesses acquire long‑term, fixed‑rate capital for real estate and major equipment. Combining the strength of Banc of California’s local underwriting and service with the Small Business Administration’s 504 program benefits, this product preserves working capital, stabilizes monthly payments, and supports strategic expansion or modernization of owner‑occupied commercial facilities.

Why choose an SBA 504 Loan?

• Low down payment: Structure typically allows for a lower borrower contribution than conventional loans, helping you conserve cash for operations or growth.
• Long‑term, fixed interest: The SBA‑backed portion of the financing provides a fixed-rate component with extended amortization, reducing exposure to rising rates and improving budget predictability.
• Preserve credit lines: Banc of California’s combined approach helps maintain working capital and revolving credit availability by shifting a portion of long‑term financing to the SBA‑backed program.
• Competitive overall cost: By blending a bank loan with SBA 504 financing, borrowers often secure attractive terms for acquisition, construction, or equipment purchases.

What you can finance

The SBA 504 Loan is tailored to tangible, long‑lived assets that support business operations. Typical eligible uses include:

• Purchase of owner‑occupied commercial real estate (land and buildings).
• Construction of new owner‑occupied facilities and build‑outs/renovations of existing buildings.
• Acquisition of long‑term machinery and heavy equipment integral to business operations.
• Site preparation, utilities, and related hard costs; eligible soft costs may include architect, engineering, and certain closing costs.
• In some circumstances, partial refinancing of existing debt may be permitted when tied to business growth and public policy goals.

Typical structure

The SBA 504 program generally pairs a conventional first mortgage provided by a participating bank with a second mortgage issued through a Certified Development Company (CDC) and backed by an SBA debenture. Common elements include:

• A bank loan that finances a portion of the project, underwritten and serviced by Banc of California.
• An SBA‑backed CDC loan that provides a long‑term, fixed‑rate second lien.
• A borrower equity contribution that helps secure the combined loan package.

Benefits for your business

• Predictable payments: Fixed payments on the SBA portion make long‑term planning easier.
• Lower upfront cost: Reduced down payment requirements free up funds for inventory, hiring, and marketing.
• Growth enablement: Financing can cover the full scope of acquisition, construction, and major equipment purchases in a single program.
• Local service, national program: Banc of California combines local decision‑making and relationship banking with the stability and advantages of SBA 504 financing.

Who is eligible

SBA 504 loans are intended for for‑profit businesses that will occupy and operate from the financed property. Eligibility highlights include:

• Businesses that meet SBA size standards and operate primarily in the United States.
• Owner‑occupant projects and other community‑oriented ventures that support job creation or public policy goals.
• Sectors commonly financed include retail, manufacturing, professional services, healthcare, hospitality, and more—subject to program restrictions.

Specific qualifications and documentation requirements vary by situation. Banc of California’s lenders work with clients to assess eligibility, prepare an application package, and coordinate with a Certified Development Company for SBA approval.

Application and process

The SBA 504 loan process involves coordinated review by Banc of California and an SBA‑authorized CDC. Typical steps include:

1. Initial consultation to determine project scope, estimated financing needs, and program fit.
2. Submission of financials, business plan, project budgets, and occupancy/use documentation.
3. Underwriting by Banc of California and parallel CDC review for the SBA‑backed portion.
4. SBA review and authorization, followed by loan documentation and closing.
5. Funding and implementation of the project with long‑term servicing as agreed.

Processing times can vary by project complexity, but Banc of California will guide you through milestones and provide transparent updates throughout underwriting and closing.

Common questions

Is my business required to occupy the property? Owner‑occupancy is a fundamental element of the SBA 504 program; the property should primarily serve the business’s operations. Can equipment be financed? Yes — long‑lived, essential equipment purchases are an eligible use when combined with real estate or as part of a project plan.

Why Banc of California?

Choosing Banc of California for SBA 504 financing means partnering with a lender that understands regional markets and the needs of small and mid‑sized companies. Our teams bring experience in commercial real estate, construction financing, and SBA programs, enabling pragmatic solutions that align financing structure with business strategy. We prioritize clear communication, practical underwriting, and a collaborative approach to get projects across the finish line.

Get started

If your business is planning to buy, build, or modernize owner‑occupied facilities or invest in long‑term equipment, the SBA 504 Loan at Banc of California offers a disciplined, cost‑effective path to ownership and growth. Speak with one of our commercial lending specialists to evaluate your project and explore a tailored financing plan that aligns with your goals.

Address Bank: Los Angeles, California, United States
Bank: Banc of California
Headquarters: Los Angeles
Products: Loans & Credit
Type: SBA 504 Loan