Our simple, proven, step-by-step process to get an SBA 504 loan
From checking eligibility to starting your repayment, ASBC has established a 8-step, hassle-free and proven process to securing your SBA 504 loan.
Step 1
Meet with an ASBC BDO
Determine if your project is eligible for a 504 loan. If so, our BDO will guide you through our streamlined application process.
Step 2
Underwriting
ASBC credit team will gather appropriate documents and submit the loan for internal approval and SBA approval.
Step 3
SBA Approval
SBA approves the loan. Ideal timeframe is 14 days from submission.
Step 4
Loan Closing
Ideal timeframe is 2-3 weeks from SBA Approval.
Step 5
Loan Funding
Ideal timeframe is 45 days after closing unless construction is involved.
Step 6
Loan Servicing
ASBC's servicing team will support you for the life of the loan, ensuring all SBA procedures and policies are adhered to.
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Frequently Asked Questions
Whether you're curious about our loan programs, general information, or application specific faqs, we've got you covered.
General Information
What is an SBA 504 loan?
A loan for businesses to purchase real estate, heavy machinery, or equipment.
Why a SBA 504 loan instead of a commercial loan? What are the advantages?
- Down payment as low as 10%
- Long term, fixed rate financing
- Terms of 10, 20 or 25 years
Why Alabama Small Business Capital?
Our team provides seamless processes from application to closing – giving our customers the certainty, speed and service they deserve
What can I use a SBA 504 loan for?
- Funds can be used as follows:
- Purchase of land
- Purchase of Building
- New Building Construction
- Purchase of machinery and equipment with 10-year useful life
- Modernize, renovate or improve building
- Soft Costs
- Purchase of land
- REFINANCE
- Existing Commercial Real Estate Debt
- Existing Machinery and Equipment Debt
- Other eligible business debt
- Existing Commercial Real Estate Debt
Who is eligible for an SBA 504 loan?
For-profit businesses with a tangible net worth not to exceed $20 million and a net profit not to exceed $6.5 million (after taxes).
Who is ineligible for an SBA 504 loan?
Ineligible borrowers include non-profits, lending institutions, and insurance companies, as well as borrowers affiliated with speculative development, gambling concerns and private clubs.
What are ineligible use of funds?
Ineligible use of funds includes working capital, inventory, rolling stock, broker fees and bank attorney fees.
Still have questions?
Can’t find the answer you’re looking for? Get in touch with a loan officer today who can help!
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