SBA 504 Loan at BOK Financial Corporation

Financing that builds your future. The SBA 504 loan program, available through BOK Financial Corporation in collaboration with Certified Development Companies (CDCs) and the U.S. Small Business Administration, is designed to help growing small businesses acquire the long-term, fixed-rate capital needed for major fixed assets. Whether you are purchasing owner-occupied commercial property, constructing a new facility, or modernizing existing operations, a 504 loan can preserve working capital while delivering predictable, affordable repayment terms.

What the SBA 504 program offers

• Long-term, fixed-rate financing: The CDC-backed portion is typically structured with long amortizations, offering stability and protection against rate volatility.
• Lower down payment: Designed to reduce initial capital outlay so business owners can invest cash into operations, hiring, or inventory.
• Competitive overall cost: The blended structure—bank participation plus SBA-backed CDC financing—often produces a lower total cost of capital compared with conventional borrowing for the same purpose.
• Preserve working capital: Keep cash available for day-to-day needs, growth opportunities, and unexpected expenses while funding long-lived assets.

Typical uses

SBA 504 loans are tailored for tangible assets that support long-term business growth. Common uses include:

• Purchase of owner-occupied commercial real estate (office buildings, manufacturing facilities, retail centers) where the borrower will occupy a substantial portion of the property.
• Construction of a new building or expansion of an existing facility to accommodate growth or new capabilities.
• Purchase and installation of heavy equipment and machinery integral to operations.
• Land acquisition and site preparation associated with the project.
• Renovations or upgrades to improve productivity, energy efficiency, or code compliance.

How SBA 504 loans are structured

While specific terms vary by transaction and borrower profile, the SBA 504 structure generally features three participants: the borrower, a private lender such as BOK Financial Corporation, and a Certified Development Company that secures an SBA-backed debenture. This partnership allows most projects to benefit from long amortizations and fixed rates on the CDC portion while the bank provides the complementary financing that supports the overall project.

Benefits of choosing BOK Financial

• Expert guidance: BOK Financial offers experienced SBA lending professionals who understand the 504 program mechanics and can help assemble a financing package tailored to your project.
• Local decision-making: Combining national SBA resources with local insight helps accelerate underwriting and align financing with market realities and business objectives.
• Coordinated process: BOK’s teams work closely with CDC partners to streamline documentation, minimize surprises, and keep projects moving toward closing.
• Strategic financing advice: Beyond the 504 loan, BOK Financial can help integrate additional banking and treasury services to support day-to-day operations and long-term growth.

Eligibility and requirements

Eligibility for SBA 504 loans is generally limited to for-profit small businesses that meet SBA size standards and intend to occupy or use the financed asset in their operations. Projects commonly must demonstrate the ability to create or retain jobs or meet certain public policy goals. Owners should be prepared to provide financial statements, business plans, and documentation of project costs and occupancy plans. Specific occupancy and down payment requirements may vary by project type and borrower profile.

Typical application and approval steps

1. Initial conversation: Discuss project scope, financing needs, and timelines with a BOK Financial SBA specialist.
2. Preliminary assessment: Provide basic financial information and project details so the team can evaluate eligibility and structure options.
3. Formal application: Complete required applications and submit supporting documents, including pro forma statements, tax returns, and site-related information.
4. Underwriting and coordination: BOK Financial coordinates with a CDC partner to underwrite the bank and CDC portions and prepare the package for SBA approval where applicable.
5. Closing and funding: Once approved, the loan closes and funds are disbursed according to the project plan, enabling construction, acquisition, or equipment installation to proceed.

Is an SBA 504 loan right for your business?

SBA 504 loans are particularly well-suited for business owners who want to invest in long-lived assets without exhausting cash reserves, who value the certainty of fixed repayment terms, and who are committed to occupying the financed property. They can be an attractive option for manufacturers, healthcare providers, professional services firms, retail operators, and many other small businesses planning an ownership-based facility strategy.

Make capital work for your growth

Financing an important real estate or equipment investment is a strategic decision. With its experience in SBA lending and a collaborative approach that pairs conventional banking with SBA-backed CDC financing, BOK Financial Corporation can help you evaluate whether the 504 program aligns with your growth plan, liquidity needs, and risk profile. Thoughtful financing today can lower your operating costs, stabilize cash flow, and free resources to invest in people, technology, and market expansion.

Explore your options with BOK Financial’s SBA team and see how a 504 loan can support the next stage of your business.

Address Bank: BOK Tower, Tulsa, Oklahoma, United States
Bank: BOK Financial Corporation
Headquarters: Tulsa
Products: Loans & Credit
Type: SBA 504 Loan