Payment calculator
SBA 504 Loan Calculator: See Your Real Monthly Payment
Most loan calculators show you one payment. An SBA 504 loan has two, a bank first mortgage and the SBA-backed portion, so one number was never going to tell you much. This one shows both, adds them together, and puts the total next to what the same building would cost on a conventional mortgage.
Four details, no credit pull. A loan officer in Reno or Las Vegas reads them and calls you. Pre-qualification within three business days.
- Free
- No credit pull
- No documents to start
- A named officer replies
We love owning this because we're in charge of our destiny.
Full Tilt Logistics, NSDC borrower · 2,350+ loans since 1981
How the project is funded
The same building, both ways
| SBA 504 | Conventional | |
|---|---|---|
| Cash needed at close | — | — |
| Monthly payment | — | — |
| Rate type | Fixed on SBA portion | Resets or balloons |
—
Amortization schedule, SBA portion
| Year | Interest | Principal | Balance |
|---|
A worked example
Say you're buying a $1,000,000 building. Your business will occupy all of it, and you've been operating for six years. Here's how a 504 splits that project:
- The bank finances 50%, $500,000, as a first mortgage, at whatever rate and term your bank sets.
- NSDC finances 40%, $400,000, through an SBA-backed second mortgage, at a rate that's fixed for the full term.
- You put down 10%, $100,000.
Your monthly payment is the sum of the two loan payments. The calculator above works out both, along with your blended rate, the single number that tells you what the financing actually costs across both loans, which is more useful than either rate on its own.
Now compare that to a conventional commercial mortgage on the same building at 25% down. You'd write a check for $250,000 instead of $100,000, and your rate would typically reset or balloon somewhere between year five and year ten.
$150,000 stays in the business. That's the number worth sitting with.
Figures above use a $1,000,000 project, an existing building, and a business operating more than two years. Your own numbers will differ.
How the 504 structure changes the math
The 50–40–10 split is the standard case, and it covers most borrowers. Two situations change it:
- A start-up, a business operating two years or less, typically puts down 15%.
- Special-purpose property, the SBA's list includes hotels, gas stations, car washes, bowling alleys, golf courses, medical facilities and about twenty other categories, also typically requires 15%.
- Both at once? Then it's usually 20% down.
The calculator handles all three. Change the property type or the business age and the split updates.
Because the SBA portion is fixed and the bank portion usually isn't, your blended rate tells you more than either number alone. You're not choosing between a fixed loan and a variable one. You're getting some of each, and after your down payment, the fixed part is the larger piece.
What this calculator doesn't include
We'd rather you hear this from us than find out at closing.
Fees. SBA and CDC fees on a 504 run to roughly 3% of the SBA portion, and they're normally financed into the loan rather than paid up front. The calculator shows loan payments, not the fee load. See the full fee breakdown.
Closing costs. Appraisal, environmental review, title and legal all sit outside these numbers.
Your bank's actual terms. We've assumed a rate and a term for the first mortgage. Your bank sets both, and a real quote will look different. Change the fields to match it.
The rate is set at funding, not approval. The SBA portion is funded by a debenture, a government-backed bond, that's sold to investors once a month. Your rate is set at that sale, not on the day you're approved. It's fixed from then on, for the whole term. Here's how that works.
That last one surprises people, so we say it early rather than late.
504 vs conventional, same building
| SBA 504 | Conventional | |
|---|---|---|
| Cash at close on a $1M project | $100,000 | $250,000 |
| Rate on the larger financed portion | Fixed for the full term | Typically resets or balloons |
| Term | 10, 20 or 25 years | Often 5–20 years with a balloon |
| Who you work with after closing | The same CDC, for the life of the loan | Varies. Servicing is often sold |
The conventional route isn't wrong. If you have the cash and you need speed, it can be the better answer. But if the down payment is what's keeping you in a lease, this is the comparison that matters.
Questions we get
What are the disadvantages of an SBA 504 loan?
How hard is it to get an SBA 504 loan?
Can you pay off an SBA 504 loan early?
What's the difference between a 504 and a 7(a)?
This page is for general informational purposes only and does not constitute legal, tax, or financial advice. Rates are set at the monthly debenture sale and are subject to change. Loan terms and eligibility are subject to SBA guidelines and underwriting.
Want us to run these numbers for real?
Send us the project and we'll come back with what you'd actually qualify for. It doesn't commit you to anything.
Four details, no credit pull. A loan officer in Reno or Las Vegas reads them and calls you. Pre-qualification within three business days.
- Free
- No credit pull
- No documents to start
- A named officer replies
We love owning this because we're in charge of our destiny.
Full Tilt Logistics, NSDC borrower · 2,350+ loans since 1981