SBA 504 Loan Process

The SBA 504 loan program is designed to finance long-term fixed assets such as real estate, renovations, and equipment. Once the SBA 504 loan is approved, the partnering lending institution in the project provides a bridge loan to cover the SBA 504 loan in order for the small business to complete the project.

Once the project is completed, the SBA 504 loan closes and typically funds a month after closing. The interest rate for the loan will be set at funding. Upon funding, the proceeds get wired to the bank to pay off the bridge loan. The small business will then have two loan payments: one to the lending institution for their loan and another for the SBA 504 loan. Automatic monthly payments from an account you designate make paying the SBA 504 loan a simple process.

During the life of the loan, SEDA-COG will handle any loan servicing requests and ensure that documentation including financial information, employment, and insurance are kept up-to-date.

Throughout the process, SEDA-COG staff will work with you to make the process from approval to closing as easy as possible.


  1. Initial Call/Meeting
  2. Discuss project and possible financing options
  3. Staff works with company to collect underwriting documentation
  4. Staff prepares loan committee presentation
  5. Loan request goes to loan committee for approval
  6. Staff completes loan application and submits to SBA for final approval
  7. Primary lender closes on their loan and interim loan covering the SBA 504 loan
  8. Company completes project
  9. SBA 504 loan closes and funds and the interest rate on the 504 loan is set