SBA 504 Loan

Typical SBA 504 Loan Project Structure

$1,000,000 Project Example

SBA 504 Loan

How the SBA 504 Loan Program Process Works

H-GALDC works directly with the financial institution and business applicant to develop financing packages that meet SBA 504 Loan Program guidelines and credit criteria.

The staff then processes, closes, and services the loan. SBA 504 Loan Program loans offer lower, fixed interest rates and longer, 25-year repayment terms.

The borrower contributes less equity, which preserves liquidity, and longer terms help improve cash flow. Borrowers can roll most of the soft costs of obtaining the loan into the project financing. Partner lending institutions fund 50% of the project amount and hold the first lien on the loan.


  • Is the business for-profit and located in Texas?
  • Will the business occupy at least 51% of the project property for existing buildings or 60% of the project property for new construction? Or, will the equipment be used for business operations?
  • Does the business, including affiliates, have a tangible net worth of less than $15 million and after-tax profits, averaged over the last two years, of less than $5 million?

If the answer is “yes” to all of these questions, the project will likely qualify for the 504 Loan Program.

Eligible Use of Funds

  • Land
  • Purchase of Existing Buildings
  • New Construction
  • Fixed Assets from Business Acquisition
  • Building Expansion/Renovation
  • Long-Term Equipment
  • Professional Fees
  • Lender’s Interim Points & Interest

VetLoan Advantage

To help veterans get the financing they need for small business ownership and success, H-GALDC is proud to offer the VetLoan Advantage program.

H-GALDC will issue a cash rebate of up to ½% of 1% of the SBA 504 loan amount or up to $5,000 to help offset the veteran’s loan expenses, including appraisal and environmental reports.

Learn More About Debt Refinancing

The SBA has updated the debt refinancing rules for the SBA 504 Loans.

→   Do you have a current conventional bank loan, or a SBA or USDA loan? Are you satisfied with your current loan terms, interest rate, maturity date, etc.? Would you like to lower your monthly loan payment and increase cash flow for your business’ needs?

→   Great news! The SBA has updated the debt refinancing rules for the SBA 504 Loans. These new changes can help businesses save money and take advantage of historically low, long-term fixed rates.

→   Imagine how the extra savings and increased cash flow can help you grow your business!

→   Complete a pre-application now to start saving!

→   You can also read more about the new debt refinancing rules Here →

Your SBA 504 Loan in 5 easy steps



Complete an online form to determine eligibility. H-GALDC staff will conduct preliminary review of your project.



Complete application. H-GALDC staff can assist with the application process and work with your bank to obtain a commitment letter. H-GALDC staff will complete the underwriting and submit the application to SBA for approval.


SBA Approval

The Small Business Administration will issue a Loan Authorization upon approval.



Loan proceeds are disbursed. After all approvals, construction can begin, or applicant can move into existing facility.


Project Completion/Funding

After project completion and funding have been confirmed, applicant will sign all SBA documents and begin monthly payments.

SBA 504 Loan Project Review Form

Online Form


Please fill out our online form and a member of the H-GALDC SBA 504 Loan program team will contact you to conduct a preliminary review of your project. H-GALDC is licensed for projects located within Texas.

For information on Business Loan Fund Start here