Frequently Asked Questions

General FAQs
Current Clients FAQs
How is a 504 project typically structured?+

504 projects typically have a 90% LTV and a 50-40-10 structure as follows:

For example, based on a $5 million total project cost, the Bank would provide a 1st mortgage of $2.5 million, the CDC would provide a 2nd mortgage of $2 million, and the Borrower would provide a down payment of $500,000.

Calculate loan amounts based on any project cost and see what monthly payments would be with our loan calculator.

How much do I have to put down?+
  • 10% for the majority of projects
  • 15% for new businesses (in operation less than 2 years) or special-purpose buildings
  • 20% for new businesses AND special-purpose buildings
What can 504 financing be used for?+

Proceeds can be used for one or many of the following:

  • Purchase of an existing building
  • Renovation of an existing building
  • Purchase of land and ground-up construction of a new building
  • Purchase of equipment with a life expectancy 10 years or more
  • Furniture and fixtures related to business operations
  • “Green” equipment such as solar panels and/or energy-efficient improvements such as windows, lighting, insulation – Learn more about the Green program.
  • Soft costs
What is a CDC?+

A Certified Development Company (CDC) is authorized by the U.S. Small Business Administration (SBA) to provide SBA 504 loans. The role of the CDC is to assist small and medium-sized businesses in acquiring 504 financing in partnership with a bank or private lender. The SBA requires that the application for every SBA 504 loan originate from a CDC.

What is the maximum project cost?+

There is no limit on the amount of the bank’s 1st mortgage, and therefore no maximum total project cost. The maximum for the SBA/CDC 2nd mortgage (typically 40% of the total project) is:

  • $5,000,000 for most projects
  • $5,500,000 for manufacturers or energy-saving projects under the Green Energy Program

Contact us to determine what the maximum SBA loan amount is for your project.

Can I get another SBA 504 loan?+

Yes, we have many clients who have obtained two or more SBA 504 loans to finance additional locations for their growing businesses. Please contact us to find out if you are eligible for additional SBA 504 financing.

When are my loan payments due?+

Loan payments are due on the first business day of every month. Late fees are applied if the payment is received after the 15th of the month.

How are my loan payments made (does it have to be by automatic debit)?+

Loan payments must be processed via an automatic debit or wire transfer. During the closing process, you filled out a form and provided a voided check indicating the account from which your loan payments would be automatically debited.

How do I change the account my loan payments are debited from?+

To change the account from which your loan payments are automatically debited, please complete this ACH Authorization form and send it to us along with a voided check for the new account. The completed ACH form and voided check must be received by our office no later than the 10th of the month in order for the new account to be used the following month for the automatic debit. Please email, fax, or mail the completed ACH form and copy of a voided check to the following:

Fax:   415-217-7610
Mail:  150 California Street, Suite 250
San Francisco, CA 94111

What is Wells Fargo Corporate Trust Services?+

Wells Fargo Corporate Trust Services is the Central Servicing Agent (CSA) for all SBA 504 loans effective March 25, 2013. The former CSA was Colson Services Corporation. The CSA is responsible for processing loan payments and handling accounting for every SBA 504 loan nationwide.

Please note that Wells Fargo Corporate Trust Services does not provide any direct client services, so all inquiries regarding your SBA loan should be directed to Capital Access Group and will be handled by our Servicing Team.

Can I prepay my SBA 504 loan?+

Yes, you may prepay your SBA 504 loan, however SBA 504 loans are funded differently than conventional bank loans and therefore have different payoff terms. Loan assumption may be a possible alternative to loan payoff depending on your situation. Please contact Capital Access Group immediately if you are considering loan payoff or assumption.

  • Partial prepayment is not allowed on SBA 504 loans
  • 504 loans can only be paid off on the third Thursday of each month
  • Capital Access Group must receive written notice 15 days in advance of the payoff date
  • Prepayment penalties apply for the first 10 years of the loan. The penalty is 100% of the interest for the first year, and declines by 10% each year thereafter. There is no prepayment penalty after the 10th year.
Is my 504 loan assumable?+

Yes, if you choose to sell your building, your SBA loan can be assumed by the buyer, and the buyer does not have to be a small business.

What is my loan balance?+

Your current loan balance can be checked at any time during the life of your loan by referencing the Amortization Schedule we provided you with in your Welcome Package after your loan funded. Your personal Amortization Schedule is provided in lieu of monthly statements, and provides a breakdown of your monthly payment for the life of your loan, with interest and principal amounts detailed each month.

To request another copy of the Amortization Schedule please use this form or contact our Servicing Team at if you need any additional support.

What is my interest rate?+

Your interest rate is referenced in the cover letter of the Welcome Package we provided you with after your loan funded. To request another copy of your Welcome Letter, please send your request to

How do I update my mailing address or other contact information?+

To update your contact information, please use this form, or send your request to Be sure to include your name, business name, loan number or property address, email/mailing addresses, as well as phone/fax numbers.

How can I find out the amount of interest paid on my loan?+

A 1098 tax statement reflecting interest paid is provided annually to the borrowing entity. Please note that we do not receive this tax information until January 31st. The statement will be sent automatically to the address on file. The Amortization Schedule we provided to you after your loan funded also shows interest paid. To request another 1098 tax statement, or a copy of your Amortization Schedule, please use this form or send your request to our Servicing Team at

Why do you ask for financial statements every year?+

Submitting annual financial statements and/or federal tax returns is one of the SBA requirements for your loan. We will send you a request for updated financials on an annual basis and ask that you submit them promptly so that we may keep your loan file in good standing.