SBA 504 Loan assists business owners obtain small business loans in US to buy a Commercial building and have their business in the building. It doesn’t matter it is a single unit building or 3 or 5 or 10-unit building. The must is you have to run your business in this building to be qualified. Without a business inside of a building, it would be a commercial loan, not SBA 504 loan.

SBA 504 loan will finance you to purchase the building and also fund you to build, remodel the whole space, purchase equipment, provide working capital… A building could be vacant currently.

KhangLending works directly with the banks and can help you find the best small business administration loan to meet your needs for your business.

SBA Loans info:

  • Interest rate: 7-8.25%
  • Term: 20-25 years
  • Monthly payments
  • Lender fee and cost: 5% (est.)
  • Loan amount from $500,000 to $20 million USD max
  • Processing time to funding: 1-2 months depend on how fast you can submit requirement documents
  • For example: Loan amount $1,000,000 – Monthly payment would be around $16,000.

SBA conditions:

  • Credit from 700 up
  • Revenue from $250,000 up
  • Tax Returns looks great
  • Collateral (value = loan amount) (IMPORTANT!!!)
  • 10-20% down payment (depends on time in business and collateral)
  • Better if you have run this business at least 3 years
  • It is ok for start-up business borrowers (have to have greater value collateral)

SBA borrowers:

Nails salon, Spa, Restaurant, Hotel, Gas Station, Hospital, Dental, Animal Clinic, Flower Shop, Body Shop, Car Dealer, Car Wash…

SBA Loans purpose:

  • A MUST: Build a building and have your business inside of the building
  • Working Capital, remodel, pay roll…
  • Equipment financing, expanding, relocation…

What we want to let you know ahead:

  • If you run a business in 3 years or longer and you have great tax returns, great profit. great credit, no debts and you are looking to borrow money to buy a building to expand your business and build your 2nd shop in there, you may be required at least 10% down. That’s it! But also it depends on what you have on your tax returns, do a math and see if what you make is more than what you spend then could afford to pay for what you borrow. If there is more risk, there is more down payment requirement.
  • Without a 3-year business, you will need a collateral to be qualified for any loan amounts to purchase a building and have your business in there. For example:You just start up a business and want to build a building or you already start a business less than 3 years and you want to build a building to have your business in there… There is absolutely collateral requirement. Let’s say you are looking to borrow $500,000. You have to have something has the same value with $500,000 loan amount to be qualified. If you want to borrow $5,000,000, you have to have something has the same value with $5,000,000 to be qualified. The same with $10 million loan amount or $20 million loan amount.
  • If you run your business at least 2 years with great tax returns and everything, we can also do Commercial loan with at least 25% down payment, 30-year term, interest rate from 5%-7%, owner occupied if you don’t want to apply for SBA 504. SBA 504 will require a lot of documents related to construction process, contractors, insurances, landlord permit, city permit and much more… While Commercial loan is simply just to help you to purchase the building without giving more fund to remodel the space or anything else.
  • Collateral, why? In case, worst case, anything can happen, if you can’t pay a bank back, they would take the collateral. Worst cases mean death, economy, landlord lock down, lawsuit, foreclosure, bankruptcy, business does not make profit…
  • What SBA lenders consider as collateral: A paid-off house, an investment accounts, Cash surrender amount (from your life insurance), an asset, a bank account… Please also note that: An owner occupied property in Texas, banks can’t take it as collateral due to the law. Only rental property is ok. Other states are fine.
  • If a business has two partners, the two partners will stand on the loan, not just one. You can stand by yourself if you want to buy out % partnership to make it 100% for yourself. If a business has three partners and only one partner wants to be out, the two other partners will have to stand on the loan to buy out the third partner to make it 100% ownership for the two partners.
  • In the loan application package that we will email you, there is one form very important to be completed. It is Personal Financial Statement where you have to complete fully and correctly. You have to list your assets, your liabilities, your income, your expenses, your investments, your debts… very detailed and correct. You’re also aware of all your assets may be used as collateral for the loan.


If you are, please prepare the documents below and email us. After receive youremail, we will email you the loan application package:

  1. A copy of your Driver License and SS# card
  2. The last three years of Tax Returns (both personal & business)
  3. Profit and Loss, Balance sheet of current year (ask your CPA for this)
  4. Business plan with all number break down (what you use the money for)
  5. Loan application package (We will email you)

We can set up a bank interview phone call after receiving an application in 2-5 days.

Please send the documents to

We can be reached at (254) 292-9764, M-F, 9am – 4p.m.