SBA 504 Loan at Fulton Financial Corporation

The SBA 504 loan program offered through Fulton Financial Corporation is designed to help growing small businesses acquire the long-term, fixed-rate financing they need to purchase major fixed assets, expand operations, and preserve working capital. Combining Fulton’s local banking expertise with the support of a Certified Development Company (CDC) and the U.S. Small Business Administration, this product is built to support job creation, economic development, and durable capital investments.

Who benefits from an SBA 504 loan?

The SBA 504 loan is ideal for small business owners who need to invest in commercial real estate, build or renovate facilities, or acquire large, long-lived equipment. Typical borrowers include restaurateurs, manufacturers, professional service firms, health care providers, retailers, and nonprofit organizations with eligible commercial activities. Business owners who want to minimize cash down payment, secure long-term fixed financing, and maintain working capital for operations will find the structure advantageous.

Key features and advantages

• Long-term, fixed-rate financing: The CDC portion of a 504 loan provides long-term fixed-rate financing matched to the useful life of the asset, helping stabilize debt service and protect against interest rate volatility.
• Low down payment: The program generally requires a modest borrower contribution, allowing owners to preserve cash for operations, inventory, and unexpected expenses.
• Higher financing leverage: Typical SBA 504 structures combine a first mortgage from a private lender with a second CDC-backed loan, enabling substantial project financing without excessive borrower equity.
• Use of funds: Financing is available for owner-occupied commercial real estate acquisitions, land purchases, construction and improvements, and the purchase of heavy equipment or manufacturing machinery with a long useful life.
• Local decision-making: Fulton’s local relationship managers provide personalized service, guidance through the SBA process, and coordination with CDC partners to streamline underwriting and closing.
• Economic development focus: The program supports job creation and community growth, making it attractive to businesses pursuing strategic expansions that benefit their regions.

Typical loan structure

An SBA 504 financing package is usually comprised of three parts: a conventional loan from a bank (often covering the majority of the project), a CDC loan backed by the SBA (covering a sizable portion of the fixed asset cost with a long-term, fixed interest rate), and a borrower contribution. This combination offers favorable loan-to-value and debt-service profiles compared with conventional financing alone. Exact proportions, terms, and eligibility rules vary by project and borrower profile, and Fulton’s underwriting team will explain the best structure for your needs.

Common uses of proceeds

• Purchase of owner-occupied commercial real estate
• Construction of new facilities or expansion of existing buildings
• Renovation and long-term improvements to property
• Acquisition of heavy equipment and specialized machinery
• Refinancing of eligible debt when proceeds are used for business expansion and meet program requirements

Eligibility overview

Eligibility for an SBA 504 loan is determined by the SBA’s small business size standards, the nature of the business activity, and the intended use of funds. In general, applicants must be for-profit small businesses that meet SBA size criteria and demonstrate sufficient management and financial capacity to support the project. Owner-occupancy requirements apply for real estate projects—borrowers should expect to occupy a substantial portion of the financed property. Additional program-specific criteria around job creation, community development, and public policy objectives may also be considered.

Application and approval process

Fulton Financial Corporation helps guide borrowers through each stage of the SBA 504 process:

1. Initial consultation: Discuss project goals, timing, and financing needs with a Fulton business banker to assess feasibility and preliminary eligibility.
2. Preliminary underwriting: Provide financial statements, business plans, and project estimates so Fulton and its CDC partner can evaluate credit, collateral, and project viability.
3. Package submission: Fulton coordinates with the CDC to assemble an SBA loan package, including documentation required by the SBA for final approval.
4. SBA review and approval: The CDC and Fulton work together to secure SBA approval for the CDC portion and finalize terms for the conventional bank loan.
5. Closing and funding: Upon approval, the transaction is closed and funds are disbursed according to the agreed-upon structure so construction, acquisition or equipment purchase can proceed.
6. Post-closing support: Fulton maintains an ongoing relationship to support loan servicing and future business needs.

Why choose Fulton Financial Corporation?

Fulton combines regional market knowledge with a full suite of commercial lending capabilities and deep SBA experience. Borrowers benefit from a single point of contact, responsive underwriting, and collaboration with CDC partners to deliver SBA 504 solutions that align with long-term business objectives. Whether you are acquiring a new facility, expanding operations, or investing in machinery that will grow production capacity, Fulton’s approach is tailored to reduce upfront capital requirements and secure stable financing for durable assets.

Next steps

If your business is planning a capital project that requires long-term, fixed-rate financing with manageable upfront investment, an SBA 504 loan from Fulton Financial Corporation may be an excellent fit. Contact your Fulton business banker to schedule a consultation, review potential structures, and begin the pre-qualification process. A dedicated lending specialist will explain program particulars, documentation needs, and timelines so you can move forward with confidence.