SBA 504 Loan in BankUnited

The SBA 504 Loan through BankUnited is a purpose-driven financing solution designed to help growing small businesses acquire long-term, fixed-rate financing for major fixed assets—real estate, buildings, land, and large equipment—while preserving working capital and minimizing initial cash outlay. Combining the strengths of community-focused banking with the U.S. Small Business Administration’s Certified Development Company (CDC) program, this product is built to accelerate expansion plans, support job creation, and deliver predictable repayment terms for durable investments.

What is an SBA 504 Loan?

The SBA 504 Loan is a government-backed program structured to finance up to 90% of a project’s total cost through a combination of a first mortgage from a lender and a second mortgage funded by a CDC and guaranteed by the SBA. BankUnited participates as the lending partner that provides the conventional first-lien financing, while the CDC/SBA portion delivers long-term, fixed-rate financing for the majority of the asset’s value. The result: lower down payment requirements, longer amortization on fixed assets, and access to attractive interest rate structures.

Key Benefits

• Low down payment: Preserve cash with modest borrower equity requirements compared to conventional financing alternatives.
• Long-term, fixed-rate financing: The SBA-backed portion typically offers multi-decade fixed rates, which stabilizes debt service for the life of the asset.
• Lower overall cost of capital: Structuring the loan with a CDC component reduces the borrower’s blended interest rate and extends repayment terms.
• Preserve existing credit lines: Use the SBA 504 to finance fixed assets while maintaining revolving credit capacity for operations.
• Support for growth: Ideal for expansion, relocation, job creation, and productivity-enhancing investments.

Eligible Uses

BankUnited’s SBA 504 financing is intended for long-term, fixed-asset investments. Typical eligible uses include:

• Purchase of land and existing buildings.
• Construction of new facilities and building expansions.
• Acquisition of long-term machinery and equipment.
• Site preparation, utilities, and landscaping improvements.
• Renovation or modernization of facilities to increase efficiency or capacity.
• Energy-efficient or renewable energy upgrades that reduce operating costs.

Examples of Who Benefits

The SBA 504 is particularly well-suited to small- to medium-sized businesses that require significant capital investment in physical assets, including but not limited to:

• Manufacturers expanding production space or upgrading plant equipment.
• Medical practices and healthcare providers acquiring office buildings or specialized equipment.
• Franchises and retail operators relocating or building new stores.
• Professional service firms investing in office facilities and technology infrastructure.
• Hospitality operators renovating properties or building new locations.

Loan Structure and Terms

The typical SBA 504 structure involves three parts:

1. BankUnited first mortgage: Generally covers up to 50% of total project costs and serves as the senior lien. This portion is underwritten and serviced by BankUnited.
2. CDC/SBA-backed second mortgage: Usually up to 40% of project cost, funded through sale of SBA-guaranteed debentures and offered at long-term fixed rates.
3. Borrower contribution: Typically around 10% equity; higher down payments may be required for startups or certain types of projects.

Amortization and term options commonly include multi-decade repayment schedules that align with the useful life of financed assets. The SBA portion is structured to provide stable, predictable payments, which supports long-term financial planning.

Eligibility

Eligibility for an SBA 504 loan through BankUnited generally requires that the applicant be a for-profit small business meeting SBA size standards, have a feasible business plan, and demonstrate an ability to repay the loan. The project should create or retain jobs or meet community development goals. Specific eligibility criteria include creditworthiness, a viable cash flow profile, and collateral sufficient to secure the loan. Startups and businesses engaged in speculative activities may face higher down payment requirements or additional underwriting scrutiny.

Documentation and Application Process

BankUnited streamlines the SBA 504 process by coordinating with CDC partners and guiding applicants through documentation and compliance. Typical documentation includes business financial statements, tax returns, a project pro forma, personal financial statements for principals, and detailed project cost breakdowns. BankUnited assists in assembling the package, timing the submission to the CDC and SBA, and aligning the first mortgage approval with the CDC/SBA funding timeline to ensure a smooth closing.

Why Choose BankUnited

Partnering with BankUnited for an SBA 504 loan combines the advantages of a relationship bank with the specialized benefits of SBA-backed financing. Our experienced commercial lending team understands the nuances of CDC partnerships, can help tailor a capital structure that protects liquidity while optimizing cost of capital, and provides hands-on support from initial consultation through closing. We prioritize clarity, speed, and service to help you translate capital investments into long-term business value.

Next Steps

If your business is considering a major investment in real estate or equipment, an SBA 504 loan through BankUnited offers a compelling balance of low down payment, long-term fixed rates, and preservation of operating capital. Begin by preparing financial statements and a summary of the proposed project. BankUnited’s commercial lending specialists will evaluate the opportunity, explain program nuances, and coordinate with a Certified Development Company to structure the financing that best aligns with your strategic goals.

The SBA 504 Loan in BankUnited is more than a financing product—it’s a strategic tool to support growth, stabilize long-term debt costs, and enable investment in assets that drive productivity and competitiveness. When the objective is durable, predictable financing for capital investment, this combination of BankUnited expertise and SBA-backed support can make the difference between a plan that waits and a plan that moves forward.

Address Bank: Miami Lakes, Florida, U.S., United States
Bank: BankUnited
Headquarters: Miami Lakes, Florida
Products: Loans & Credit
Type: SBA 504 Loan