What is the maximum SBA 504 loan amount?

In this answer, CDC means Certified Development Company.

The maximum 504 debenture is $5,000,000, or $5,500,000 per project for small manufacturers and eligible energy projects. The limit applies to the debenture, not the whole project. SOP 50 10 8.1 caps the gross debenture at $5,000,000 outstanding for each small business and its affiliates (Sec. C, Ch. 1, Para. D.1, p. 241). An Eligible Passive Company and its Operating Company count as one business.

Who gets the higher limit

Small manufacturers and eligible energy public policy projects qualify, for each project (13 CFR § 120.931(c)).

What counts toward the limit

• Only 504 loans, committed or outstanding, count (Para. D.1.b).
• Policy Notice 5000-879058: a 7(a) balance up to the maximum loan limit does not reduce the amount available under the 504 program.
• The gross debenture includes eligible administrative costs, so the amount funding the project is slightly less.

How large a project that supports

Under the standard structure, 50% third party lender, 40% CDC debenture, 10% borrower, a full $5,000,000 debenture implies a project near $12.5 million. That is before administrative costs. The third party loan and your contribution fund the rest.

More than one project

You can finance several projects at once with separate 504 loans, subject to the debenture limits. Source: Policy Notice 5000-879058 and App. 3.

The minimum

A 504 loan cannot be less than $25,000 (13 CFR § 120.930(b)).