Financing Structure for SBA 504 Loans

The SBA 504 loan program can provide up to 90% financing for existing businesses, that means just 10% borrower contribution. The borrower contribution increases to 15% in the case of a new business or special purpose building, or 20% if both apply. The financing comes from a partnership with a lender, Montana Community Finance Corporation (MCFC) and the small business. The funding is typically 50% from the lender, 40% from MCFC and 10% from the small business.

There is no upper limit to project size but there is a minimum of $100M.

The loan financing for MCFC’s portion can go up to $5MM or up to $5.5MM if a manufacturer or an energy goal is met.