To encourage business expansion and job creation, we offer the SBA 504 Program. This unique program provides up to 90% long-term, fixed-rate financing for real estate acquisitions, renovations, expansions and equipment to small to midsized businesses that have employees
• Available for a variety of uses, including the purchase or construction of an existing property or the purchase of land
• 90% financing (10% down payment)
• Owner-occupied real estate and equipment
• Below-market fixed rates
• Financing available for many SBA related fees/closing costs
• Eligibility available for most for-profit businesses
• 20-year fixed rate and 10-year fixed rate on equipment (on the SBA second loan)
• Most for-profit business (corporation, partnership or proprietorship).
• Operating company must occupy 51% of existing building or 61% with new construction.
• The net worth of a business must not exceed $15 million dollars and the net income after taxes cannot exceed $5,000,000.
• The average net profit after tax must not exceed $2 million (average over the last two years). Check with a SBA specialist if maximums are close or exceeded.
• Maximum project size is $6 million for non-manufacturers and $10 million for manufacturers.
• Equity requirement is 10%. An extra 5% is required for either a start-up business (two years or less) or a single-purpose building (10% additional if both are applicable).
What the loan can be used for
• Purchase or construction of an existing owner-occupied building
• Modernization, renovation or restoration of a building including leasehold improvements
• Purchase of equipment with economic useful life of 10 years or more
• Other attendant soft costs such as accountants, engineers, appraisers, construction period interest
• Purchase of land
• 10% contingency on a real estate construction project
Ineligible use of proceeds
• Working capital
• Debt consolidation or repayment
• Refinancing (though you may be able to refinance an existing first mortgage of an existing SBA 504 deal)
Three Easy Ways to Apply
• At any Eastern Bank branch: Use our branch locator to find one near you.
• By email: send an email to our Business Banking team.
• By phone: Call 800-333-8000 and select Option 1