Is your small to medium sized business customer acquiring a facility or capital equipment?  If so, the 504 Loan Program may be perfect for you and your clients.

The 504 Loan Program allows you to offer your small business clients loans at competitive interest rates that are typically enjoyed by much larger businesses. 504 loans offer you the ability to better manage risk and offer ancillary products and services as your clients grow their business.

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504 Purchase Money Loans504 Debt Refinance Loans Community Loans

504 Loans – Advantages


  • Save money – up to 90% financing
  • Manage cash flow with competitive long-term fixed rates up to 25 years
  • Save time with quick loan approval and full closing & servicing support

1st Trust Lender

  • Use own documents / process
  • No ongoing SBA reporting / fees
  • Expand product offerings with up to 90% financing and lending to higher risk industries
  • Possible Community Reinvestment Act (CRA) credit


  • Expand pool of qualified buyers
  • Increase income / make the sale
  • Satisfied buyer

Application Package / Approval Timing

Needed from Borrower

  • Essentially same as any commercial lender
  • Business tax returns
  • Projections (if required)
  • Personal financial statements and tax-returns for owners
  • History / description of business / owners’ resumes
  • Cost documentation – purchase contract or letter of intent, construction / renovation estimates


  • Application Checklist or Apply Online Here!
  • With complete application package –
  • Approximately 30 days (depending on complexity of transaction)

Eligible Project Costs

  • Owner occupied = 51% occupied by the business; 60% for new construction
  • Project sizes range from $200,000 to as large as $25 million
  • Project costs include :
    • Real estate acquisition (existing building or land)
    • Construction or renovation
    • Furniture, fixtures & equipment
    • Soft costs and professional fees
    • Debt refinancing
  • Down payment is typically 10% of the project costs
    • 15% down if start-up business or special use real estate
    • 20% down if start-up business and special use real estate

“We value our partnership with all of our lending partners who have contributed to our success.”

Atlantic Union Bank
Bank of America, N.A.
Eagle Bank
First Bank & Trust Company
Freedom Bank of Virginia
John Marshall Bank
M & T Bank
Old Line Bank
PNC Bank, N.A.
Towne Bank
Village Bank

Paul Kukla, VP PNC Bank

“BFG provides consistent great expertise and great service which gives me a level of comfort knowing that I have a great team supporting me and the customer. No matter the deal, no matter the stage in the process, they consistently go above and beyond expectations. I don’t know how you could find a better CDC partner than BFG; additionally, they are very nice people.

J.D. Zachry, Senior Vice President, Market Executive

My team’s partnership with Gerald Baroudi and BFG truly is paramount to our success as a commercial banking group in this community. Gerald values the client experience and represents what we, as community bankers, stand for as to meeting the needs of the business community. I can’t imagine going to market without having Gerald on our side!

Kathryn R. (Kathy) Speakman, Vice President and Commercial Loan Officer, National Capital Bank

They (Business Finance Group) are ultimate professionals and 504 experts, from the lender to their back office staff to the loan administrative group.  A top notch and well-managed team, they make closing loans easy.

Thomas Rea, President of Bank of The James, Shenandoah Valley Region

At Bank of The James, we pride ourselves on delivering excellent customer service and being able to put our customers in the best products for them. Business Finance Group shares those values and they have been a trusted partner to help us deliver the best to our customers. From a knowledgeable team that helps us brainstorm ways to help before the loan application, to the individuals who provide one on one support through loan underwriting, approval and closing. Top to bottom, Business Finance Group makes SBA 504 lending easy on the bank and a value add for our customers.

Tom Eagleson, Biomic Sciences

The BFG team guided us through the SBA504 loan process from start to finish keeping us informed on every step. Some thought we would not be able to complete the process in a 5 month period but with BFG we hit our deadlines and closed the loan on time. Thank you BFG for being our partner and helping us achieve our dreams!


What Companies are eligible for the 504 loan?

For-profit corporations, partnerships, proprietorships, business whose net worth does not exceed $15 million.

After tax profits (net) average less than $5 million during the previous two years.

Are non-profit companies eligible for the 504 program?

No, non-profit institutions are not eligible under the 504 program.  Lending or investment firms, rental property held primarily for sale or investment or speculation properties are also not eligible.

What are the appraisal requirements for an SBA loan?

SBA will not accept a restricted appraisal, and at least two valuations methods are required. Appraisals must be addressed to include Business Finance Group and the U.S. Small Business Administration.

Appraisers must meet certain qualifications, and appraisals may need to meet specified industry standards.

For projects with substantial construction or renovation, a letter from an architect or appraiser is required to state that the project was substantially completed according to plans.

What are the environmental requirements for an SBA loan?

A record search risk assessment, transaction screen or Phase 1 environmental report may be required.

Does the small business have to create a required number of jobs?

Yes, but SBA allows small business to meet other economic development criteria if the job creation does not meet the standards.

Is there a minimum project size?

Yes, the minimum project size is $125,000.

When is a commercial mortgage considered eligible for refinancing under the new rules?

  • The loan must have funded at least 2 years ago
  • 85% of the loan proceeds must have been used to acquire real estate or equipment
  • The property must be at least 51% owner-occupied
  • The loan cannot be a federally guaranteed loan (a SBA 7a, 504, first trust to a 504 or a USDA loan)

Can a bank refinance its own conventional loan through the new 504 refinancing program?

Yes! The lender must provide an inception to date payment history of the loan the lender must certify that it has no knowledge of any default or indication of a pending default.  Additionally, the lender cannot sell the first trust into the secondary market.

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