How the SBA 504 Loan Works
Here is the simple version: the cost of your project gets split three ways.
Your bank covers about 50% of the total cost.
OSDC covers up to 40% through the SBA 504 program.
You put in about 10% as your down payment.
Opening New Possibilites for Your Future
That means you can buy a building or major equipment with as little as 10% down. Most traditional bank loans require 20% or more. That difference can be hundreds of thousands of dollars you keep in your business instead of tying up in a down payment.
You do not have to leave your current bank either. OSDC works alongside your existing lender. They handle their portion and we handle ours. The business owner gets the benefits of both.
What makes the SBA 504 Loan different?
Two things set the SBA 504 apart from a regular bank loan: the down payment and the interest rate.
Low down payment.
Most conventional loans ask for 20% to 30% down. The SBA 504 requires as little as 10%. That is money that stays in your business.
A fixed interest rate that never changes.
Your interest rate locks in on day one and stays the same for the entire life of the loan. Whether you choose a 10, 20, or 25-year term, your rate does not adjust, and your payment does not go up. No surprises.
That kind of predictability is hard to find in commercial real estate financing. It makes budgeting easier and takes a lot of uncertainty off the table.
