SBA 504 Program

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
• Inventory
• 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