SBA 504 Loan at WSFS Bank

The SBA 504 loan program is a powerful financing solution designed to help small businesses expand, modernize, and invest in long-term fixed assets. At WSFS Bank, we work with Certified Development Companies (CDCs) to provide access to SBA 504 financing that combines affordable down payment requirements, long-term fixed rates, and terms tailored to asset life. This program is ideal for business owners seeking to purchase owner-occupied commercial real estate, construct or renovate facilities, or finance major equipment purchases with predictable payment schedules.

What the SBA 504 loan finances

SBA 504 loans are intended for the acquisition, construction, or improvement of fixed assets that support business growth. Typical uses include:

• Purchase of owner-occupied commercial real estate.
• Construction of new facilities or expansion of existing buildings.
• Renovation, modernization, or conversion of property for business use.
• Purchase of long‑term machinery and heavy equipment.
• Land acquisition and site improvements essential to the project.

How SBA 504 financing is structured

The traditional SBA 504 structure links a private-sector lender and a CDC to finance a project. Typically, the private lender provides roughly 50% of the total project cost, the CDC (backed by the SBA) covers approximately 40% through a long-term, fixed-rate debenture, and the borrower contributes about 10% as a down payment. This combination reduces the amount a business must put down up front and helps preserve working capital for operations and growth.

Key benefits for small businesses

• Low down payment: Preserve cash reserves—down payments are often significantly lower than conventional financing for similar projects.
• Long‑term, fixed-rate financing: The CDC portion is usually available with fixed rates and long maturities that align with the useful life of real estate or equipment, improving cash flow predictability.
• Competitive overall financing package: By sharing financing between a private lender and a CDC, borrowers can access large projects with favorable terms.
• Conserve working capital: Lower equity requirements let business owners allocate funds to operations, hiring, and marketing.
• Local underwriting plus SBA backing: WSFS Bank brings local credit expertise while the CDC/SBA portion provides added credit support for eligible projects.

Eligibility and typical borrower profile

SBA 504 loans are designed for for‑profit small businesses that meet SBA size standards and operate in eligible industries. Businesses seeking to purchase or substantially improve fixed assets and that can demonstrate the ability to repay the financing are typical candidates. Owner-occupancy requirements and public policy considerations (such as job creation or retention goals) are part of the program criteria. Specific eligibility details and thresholds are determined by the SBA and the partnering CDC.

Terms and repayment

The SBA-backed CDC portion is generally structured with long-term amortizations that match the life of the asset—commonly offered in 10-, 20-, or 25-year terms for real estate projects—with fixed interest rates on that portion. The private lender portion is tailored to the borrower and can have maturities and amortization schedules that align with the overall project plan. Together, these elements offer a predictable repayment schedule that supports strategic growth planning.

Documentation and application process

WSFS Bank guides applicants through a structured process that typically includes preliminary qualification, project review, and coordinated packaging of documentation for both the bank and the CDC. While requirements vary by project, commonly requested materials include:

• Business tax returns and financial statements (historical and interim).
• Projected cash flow and income statements demonstrating repayment capacity.
• Personal financial statements and credit histories for principals.
• Business plan or description of the project, including construction plans if applicable.
• Purchase and sale agreements, contractor bids, equipment invoices, or lease documents.
• Appraisals, environmental assessments, and title documentation when required.

WSFS Bank works closely with applicants and the CDC to identify required items early in the process, streamline underwriting, and coordinate approvals to keep projects moving efficiently.

How SBA 504 compares to other SBA products

Unlike SBA 7(a) loans, which are more flexible and can be used for working capital, inventory, or business acquisition, SBA 504 loans are specifically tailored for fixed-asset financing—real estate and long-lived equipment—where long-term, fixed-rate financing and lower down payment are priorities. Borrowers should evaluate which SBA program best matches their financing objectives; WSFS Bank can help determine the optimal structure for each project.

Why choose WSFS Bank for SBA 504 financing

WSFS Bank combines local market knowledge with experience in SBA lending to help small businesses plan and execute capital projects. Our relationship-driven approach focuses on understanding your business goals, structuring a financing package that preserves cash flow, and coordinating with CDC partners to deliver a seamless SBA 504 solution. We emphasize clarity throughout the process, timely underwriting, and ongoing support from application through loan closing and beyond.

Next steps

If you are considering an expansion, purchase of owner-occupied property, or major equipment investment, SBA 504 financing through WSFS Bank can be an effective tool to promote long-term growth. Start by preparing key financial documents and a concise project summary, then connect with a WSFS lending specialist to discuss preliminary eligibility, potential structure, and the anticipated timeline for approval and funding. Together, we can evaluate how SBA 504 financing aligns with your business strategy and financing needs.

Address Bank: Wilmington, Delaware, U.S.
Bank: WSFS Bank
Headquarters: Wilmington, Delaware
Products: Loans & Credit
Type: SBA 504 Loan