An SBA 504 buyer education workshop
A place to
call your own.
Understand the financing. Explore the numbers.
Plan your next move.
01 / The financing
One project. Three parts.
A typical SBA 504 project combines a bank loan, CDC financing and your contribution.
Typical structure. Your project may require more equity.
- Bank: Usually 50%. You negotiate the rate and terms with your bank.
- CDC: Usually 40%. A Certified Development Company arranges the SBA-backed portion.
- You: Typically 10%. A new business or special-purpose property generally needs 15%; both need 20%. With the bank at 50%, the CDC share falls to 35% or 30%.
Speaker notes · Part 2
Walk through the funding stack and show that all three shares must total 100%. Explain that “new business” and special-purpose property are lender-reviewed classifications. Discuss planned occupancy: existing buildings generally require at least 51% business occupancy; new construction generally starts at 60%, with additional future requirements. Ask the CDC to confirm the applicable rules and any exceptions. See the SBA sources below.
02 / Your numbers
What could your payment be?
Adjust the project cost and financing to see an estimated monthly payment. An illustration, not a quote.
- Bank payment
- $7,389.91
- CDC payment
- $5,421.67
- Bank loan · 50%
- $1,000,000
- CDC loan · 40%
- $800,000
- Borrower equity · 10%
- $200,000
$2,000,000 project · bank 7.50%, 25-year amortization · CDC 6.54%, 25 years.
What this estimate leaves out
Equity is not total cash at closing. Taxes, insurance, maintenance, closing costs and financed fees are excluded. Bank balloon payments and rate changes are not modeled. Annual SBA fees are not added again to the effective-rate estimate.
Speaker notes · Part 3
Start with the $2 million example, then change the equity scenario and confirm the loan shares still add to the project cost. Set either rate to 0% to show principal divided by months. Bank amortization and CDC term are independent. Cash-flow coverage must consider the business’s other debt too; this calculator cannot establish a debt-service-coverage ratio or an approval.
Before you decide
Lease or own?
More control or more flexibility? Start with what your business needs.
When you lease
Flexibility to move. Less responsibility for the building. Watch renewal terms and rent increases.
When you own
Control of your space. A chance to build equity. Budget for debt, upkeep, taxes and insurance.
Monthly rent × 60, with no increases. This is rent paid—not savings from buying.
Speaker notes · Part 1
Ask participants what their space needs to make possible over the next five years. Let them calculate rent × 60, then name costs and benefits absent from that figure. Avoid calling rent “100% interest” or treating every loan payment as equity. Invite a discussion about flexibility, maintenance, cash reserves and location risk.
03 / What’s next
Let’s talk about your space.
Bring what you have. Brian can help you understand what comes next.
For your reference. This checklist isn’t saved or submitted.
A clearer next step.
Review your project, questions and next steps with Brian Kennedy.
Speaker notes · Part 4
Invite each participant to identify one missing document and one question for the lending team. Do not use a universal credit-score cutoff or promise that a checklist establishes eligibility. Ownership, citizenship and residency rules require current-policy review. Encourage a lender conversation before property or financing commitments.
The details
Rates & sources.
September 2026 AmPac rates, checked September 23. Confirm current pricing with AmPac. This is not an automated live feed.
View published rates, fees and sources
| CDC term | Standard | Manufacturing |
|---|---|---|
| 25 years | 6.54% | 6.30% |
| 20 years | 6.53% | 6.28% |
| 10 years | 6.60% | 6.30% |
The calculator models 20- and 25-year scenarios only. Check the AmPac rate source ↗
Fees depend on the approval date.
For FY2026, the standard SBA upfront guaranty fee is 0.50%; the annual service fee is 0.209% (0.2115% for refinance without expansion). The published FY2027 schedule changes the annual rates to 0.203% and 0.204% respectively, effective October 1, 2026.
Manufacturer waivers and the FY2027 expansion to certain food-supply-chain and rural businesses require confirmed classification. These waivers do not eliminate all fees. Annual fees use outstanding balances; this page does not calculate them or decide waiver eligibility.