Designed to buy, build, or upgrade your business space
Get the funds you need to meet your business goals
Designed to buy, build, or upgrade your business space
Get the funds you need to meet your business goals
SBA 504 Loan*
The SBA 504 Loan is designed to help preserve more of your long-term working capital for operations, innovation, and scaling. Whether you're investing in land, constructing a facility, or upgrading heavy equipment, WaFd Bank makes the process straightforward so you can focus on growing your business.
Buy or build the real estate your business is located on
Buy or build the real estate your business is located on
Roll soft costs into your loan
Roll soft costs into your loan
Preserve working capital for other business needs
Preserve working capital for other business needs
Fuel your growth with flexible, owner-occupied real estate financing
Features & benefits:
- Finance up to 90% of your project costs
- Fixed-rate financing for predictable payments
- Include land, construction, heavy equipment, and more
- Preserve working capital for business growth
- Roll soft costs into the loan for easier budgeting
Best if you:
- Plan to own your business property
- Need long-term, fixed-rate financing
- Want to conserve cash for operations
- Are expanding your footprint
- Require specialized equipment
Power your growth with small business loans, featuring flexible business financing
WaFd Bank's SBA Loans and Credit Lines
| SBA 7(a) Loan | SBA 504 Loan | SBA Express Line of Credit | |
|---|---|---|---|
| Uses | Flexible; working capital, inventory, debt refinancing, purchasing another business, etc. | Buy or improve major fixed assets like commercial real estate, long-term equipment, upgrades, or expansion | Flexible; manage cash flow, seasonal gaps, emergencies, etc. |
| Maximum loan amount | Up to $5,000,000 | Up to $15,000,000 | Up to $500,000 |
| Term | 2 to 25 years | 10, 20, or 25 years | 10 year term, use as a line of credit for 2 years, then converts to 8 year repayment period |
| Prepayment penalty | Only applicable for terms of 15 years and up, declines as years pass | Varies, but declines as years pass | N/A, use it and pay it off again and again |
| Interest rate | Can be fixed or variable | Fixed | Variable |
| Access to funds | Varies depending on the project; typically a one-time lump sum disbursement | Varies depending on the project; typically a one-time lump sum disbursement | Borrow as needed up to a set amount |
| Down payment | Varies based on use of funds | Generally 10%, can be up to 20% | Varies based on use of funds |
| Collateral | Can be secured or unsecured, depending on use of funds | Secured by property or equipment | Can be secured or unsecured, depending on use of funds |
Uses
- SBA 7(a) Loan: Flexible; working capital, inventory, debt refinancing, purchasing another business, etc.
- SBA 504 Loan: Buy or improve major fixed assets like commercial real estate, long-term equipment, upgrades, or expansion
- SBA Express Line of Credit: Flexible; manage cash flow, seasonal gaps, emergencies, etc.
Maximum loan amount
- SBA 7(a) Loan: Up to $5,000,000
- SBA 504 Loan: Up to $15,000,000
- SBA Express Line of Credit: Up to $500,000
Term
- SBA 7(a) Loan: 2 to 25 years
- SBA 504 Loan: 10, 20, or 25 years
- SBA Express Line of Credit: 10 year term, use as a line of credit for 2 years, then converts to 8 year repayment period
Prepayment penalty
- SBA 7(a) Loan: Only applicable for terms of 15 years and up, declines as years pass
- SBA 504 Loan: Varies, but declines as years pass
- SBA Express Line of Credit: N/A, use it and pay it off again and again
Interest rate
- SBA 7(a) Loan: Can be fixed or variable
- SBA 504 Loan: Fixed
- SBA Express Line of Credit: Variable
Access to funds
- SBA 7(a) Loan: Varies depending on the project; typically a one-time lump sum disbursement
- SBA 504 Loan: Varies depending on the project; typically a one-time lump sum disbursement
- SBA Express Line of Credit: Borrow as needed up to a set amount
Down payment
- SBA 7(a) Loan: Varies based on use of funds
- SBA 504 Loan: Generally 10%, can be up to 20%
- SBA Express Line of Credit: Varies based on use of funds
Collateral
- SBA 7(a) Loan: Can be secured or unsecured, depending on use of funds
- SBA 504 Loan: Secured by property or equipment
- SBA Express Line of Credit: Can be secured or unsecured, depending on use of funds
Connect with Us
Our knowledgeable and experienced bankers are ready to help.
Scale Your Success
Expand your financial capacity with our integrated business banking solutions, designed to scale with your goals.
REMOTE DEPOSIT CAPTURE
Submit your bank deposit using a simple desktop scanning device
- Save time, no need to drive your deposits to the bank
- Receive credit faster
- Access images of deposited items
eACH
A secure and fast way to send and receive payments
- Vendor Payments
- Payroll
- Payment Collection
ADDITIONAL OPTIONS
More ways to upgrade your account
- Treasury Prime for ultimate control over business accounts
- Sweep Accounts
- Zero Balance Accounts
- eWires: send domestic and International wires quickly
Expert Insights
Navigate your business confidently with expert knowledge and guidance.
How to Qualify for an SBA 504 Loan
We've compiled some common answers to help address some of your questions.
What's the Difference Between SBA 7(a) and 504 Loans
There are a few key differences to consider when choosing the right one for your business.
Small Business Cybersecurity Tips and Best Practices
Breaches are becoming an increasingly common risk when doing business. How can you protect your business and your customers?
Frequently Asked Questions
*Loans subject to credit approval.