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The information provided by these calculators is for illustrative purposes only and accuracy is not guaranteed. The default figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a BLP financial professional prior to relying on the results.

This calculator does not have the ability to pre-qualify you for any loan program. Qualification for loan programs may require additional information such as credit scores and cash reserves which is not gathered in this calculator. Information such as interest rates and pricing are subject to change at any time and without notice. This calculator does not calculate the Annual Percentage Rate or Average Prime Offer Rates. BLP does not guarantee any of the information obtained by this calculator.

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Lenders & Brokers FAQs - BLP - Business Lending Partners
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Lenders & Brokers

Frequently Asked Questions

BLP is a private non-profit that is licensed as a Certified Development Company (CDC) which allows us to market, approve, close, and service SBA 504 loans in the State of Wisconsin. More About Us

Category: General

The 504 Loan Program is a U.S. Small Business Administration (SBA) funded program that provides financing to small and mid-sized businesses for the purchase of equipment and commercial real estate. The SBA loan is administered by a Certified Development Company (CDC) such as BLP in partnership with a commercial bank or credit union lender.

Category: SBA 504

The primary lender will fund all of the debt initially including the portion of the debt that will be held by SBA in the long term. Once the balance of the debt is fully funded by the primary lender, the SBA will fund their portion of the loan in approximately 90 days. Read More

Categories: General, SBA 504

Following approval from the primary lender, SBA approval typically takes approximately 3 weeks. Read More

Category: SBA 504

The rate on the 504 loan is set upon funding of the SBA loan following the completion of the project. Click here to see Historical Rates

Category: SBA 504

When your loans close and your SBA 504 loan is funded, you’ll incur various fees totaling approximately 2-3% of the SBA loan amount, plus an attorney closing fee of $2,500. These fees are financed within the SBA loan proceeds, so they are not out-of-pocket expenses. BLP will collect a deposit for a portion of these fees only after approval is received from SBA. There are no application fees.

Category: SBA 504

SBA will take a subordinate collateral position behind the primary lender. Generally, collateral will include only the assets being purchased with SBA loan funds. The 504 program does not require additional collateral as required within the 7(a) program such as personal assets of owners.

Category: SBA 504

Projects must be centered around owner-occupied commercial real estate and/or fixed equipment. This can include ground-up construction and renovations.

Category: SBA 504

In most cases, a 10% equity contribution will be required. For startup businesses or for specialty-use properties, an extra 5-10% contribution may be required. This equity requirement can be met by using assets other than cash including private financing, municipal incentives, or equity in the subject property.

Category: SBA 504

Compared to conventional commercial financing, the SBA 504 program helps borrowers reduce their down payment and fix the interest rate on a portion of the financing for up to 25 years at a rate that is typically below-market. For lenders, risk is reduced as the primary lender will typically lend 50% of the cost while SBA bears most of the collateral risk with a subordinate lien position.

Category: SBA 504

Yes! For existing commercial real estate properties, the borrowing company must occupy at least 51% of the leasable area and the remainder can be leased to third parties. For new construction buildings, the borrowing company must occupy 60% of the leasable area immediately with plans to occupy 80% over time.

Category: SBA 504

Yes! Generally, the SBA 504 program can be used to refinance debts that were originally incurred primarily to fund purchases of owner-occupied commercial real estate and/or fixed equipment.

Category: SBA 504

Yes, however, there are two conditions to consider:

  1. The loan may only be prepaid in its entirety. Partial prepayments are not permitted.
  2. An annually declining prepayment penalty applies during the first 10 years of the loan.
Category: SBA 504

Generally, the 504 program will make sense for projects with a total cost of greater than $400,000. All borrowers are eligible for up to $5 million in aggregate SBA financing through the SBA 504 & 7(a) programs. Projects involving small manufacturing firms and green-energy generation are eligible for up to $5.5 million on each project.

Category: SBA 504

Yes, startups are eligible. newly established companies would need to provide a written business plan with financial projections.” The financing structure also changes in that SBA requires an additional 5% cash equity injection from the borrower reducing SBA’s participation level in that project.

Categories: General, SBA 504

Lender's Benefits

Reduced Risk

SBA is a secondary lender, providing a direct loan in a subordinate lien position improving the bank's collateral position and reducing risk. While the SBA 7(a) Guarantee program is a a government restricted loan, the SBA 504 is not. BLP staff handles all of the government paperwork and servicing.

Increase Small Business Lending

The bank's exposure is reduced by partnering with SBA on the financing of a project. By mitigating their risk through these programs, banks can provide more loans and offer opportunities to more businesses. Additionally, banks can provide more loans to the same business, where legal lending limits may be constraining.

Obtain CRA Credit

Banks can potentially obtain CRA credits by participating in one of our lending programs.

Increase Portfolio Size

We structure, evaluate, process and service SBA loans which cannot be done conventionally.

Borrower's Benefits

Lower Down Payment

The borrower may provide a cash down payment as low as 10% of the total funding needs, allowing them to save their cash for other business needs.

Fixed Rate

The borrowers do not have the risk of an increase in the interest rate on the SBA loan making long-term planning for the business easier because borrowers know the amount of their mortgage payments for the next 20 years.

Long Term

SBA 504 loans are made for 10, 20 or 25 year terms. Longer terms result in lower monthly payments for the borrower without the concern of balloon payments due prior to the loan maturity.

Low Interest Rates

The long-term, competitive interest rate results in savings over the life of the loan.

How We Help Businesses

In order to finance and assist with the growth and development of businesses throughout the State of Wisconsin, BLP staff provides access to the SBA 504 loan program and other resources using our expertise, knowledge, and partnerships.

What we do

BLP is committed to business growth and community development by providing alternative financing options for: