SBA 504 Loans

SBA 504 Loans

Thinking of purchasing or renovating commercial real estate or purchasing long-term equipment to grow or expand your business? Our team of experts actively partner with local Certified Development Companies (“CDC’s”) to offer financing under the SBA’s 504 Loan Program. A typical 504 project is structured with fifty percent of the project costs provided through an American Riviera Bank loan. Forty percent of the project costs are financed with a fixed-rate debenture secured with a junior lien from a CDC.

Benefits

  • Financing for projects up to $10 million, subject to credit approval, including acceptable collateral. An American Riviera Bank expert will work with you to put together financing for a $10 million project, with the Bank providing a $5 million first mortgage with a SBA 504 debenture of $4 million.
  • Low down payment. In most cases, you are required to inject just 10 percent of the total project cost, which includes renovations and soft costs.
  • Fixed rate on the SBA 504 portion. You don't have to worry about a variable rate that increases the loan payments on the CDC portion of your loan.
  • Flexible terms. American Riviera Bank offers 20- and 25-year terms on the Bank portion of the loan, with capped variable interest rates.

Eligible SBA 504 Financing

  • Purchasing land and buildings
  • Building expansion and remodeling
  • New construction
  • Purchasing long-term machinery and equipment with a useful life of at least 10 years
  • Soft costs relating to the loan, such as architectural and legal fees or costs for appraisals and environmental studies

Refinancing is also available on a limited basis, including interest and fees on the construction and/or interim bank financing. Financing for other needs such as working capital, inventory, debt consolidation or refinancing are eligible through a separate SBA 7(a) Loan Guaranty Program.

What do I need to apply?

  • 3 years business federal tax returns
  • Current Income Statement and Balance Sheet
  • Business Debt Schedule to match Balance Sheet (we can provide you with a spreadsheet)
  • 3 years personal federal tax returns
  • Personal Financial Statement
  • Copy of business lease
  • Purchase Agreement

Reach out to one of our SBA experts for more information on application requirements.

Ask an Expert

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Annette Jorgensen

Vice President, SBA Business Development Officer

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805-979-3846
Location: Santa Barbara

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Renee Howard

Assistant Vice President, SBA Business Development Officer

Send E-mail
805-540-6235
Location: San Luis Obispo

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Lesley Lang-Lopez

Vice President, SBA Lending Manager

Send E-mail
805-979-3848
Location: San Luis Obispo

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American Riviera Bank knows and cares about our customers.

"It's great to bank with American Riviera because you get to know bankers who are involved in your community, and they get to know about your business, too."
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