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SBA 504 structure calculator

An SBA 504 project is financed in three parts: a bank loan, an SBA-backed debenture through a development company, and the borrower's down payment. Type the project cost to see each part and the fees financed with the debenture.

By Research desk, The Lender Report ·Sources reviewed November 11, 2026

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JavaScript is off, so the form cannot calculate. The worked example below shows the same arithmetic for sample numbers, and the formula is written out under it.

A worked example

SBA's own pricing example: a $1,000,000 project for a new business, a 20 or 25-year debenture, $2,500 of closing costs. The tool reproduces SBA's gross debenture of $362,000.

Third-party lender (the bank): $500,000; 50% of the project
Debenture, net: $350,000; 35% of the project
Borrower down payment: $150,000; 15% of the project
SBA guaranty fee, 0.50%: $1,750
Funding fee, 0.25%: $875
Processing fee, 1.5%: $5,250
Closing costs: $2,500
Underwriter's fee, 0.4% of the gross debenture: $1,448
Gross debenture: $362,000; $12,000 of it is fees

The sum of the net debenture and the first four fees is divided by 0.996 and rounded up to the next even thousand. The underwriter's fee is then 0.4% of that gross figure.

For a standard project, a $2,000,000 cost splits into a $1,000,000 bank loan, a $800,000 net debenture and a $200,000 down payment. For a $20,000,000 project the debenture would pass SBA's $5,000,000 limit, so the net debenture is held to $4,867,971 and the bank carries $13,132,029. The down payment stays at $2,000,000.

The three parts

SBA policy says the bank, called the third-party lender, provides 50 percent or more of the financing. The development company provides up to 40 percent through the debenture, which SBA guarantees in full. The borrower puts in at least 10 percent. A new business, meaning two years or less of operation, or a special purpose property raises the borrower's share to 15 percent and cuts the debenture to 35 percent. Both together make it 20 percent and 30 percent.

The gross debenture is limited to $5,000,000 for a business and its affiliates, or $5,500,000 for a small manufacturer or an eligible energy public policy project. The bank loan must be at least as large as the net debenture, and its term must be at least 10 years when the debenture runs 20 or 25 years, and at least 7 years when it runs 10.

The fees

Fees in a 504 project, SOP 50 10 8.1 and the fiscal year 2027 notice
Fee	Amount	Paid by, and when
SBA guaranty fee	0.50% of the net debenture	Financed, once. Waived for manufacturers, food supply chain and rural businesses.
Funding fee	0.25% of the net debenture	Financed, once. Covers the trustee, fiscal agent and transfer agent.
Development company processing fee	Up to 1.5% of the net debenture	Borrower, financed or paid up front.
Closing fee	Reasonable; up to $10,000 may be financed	Borrower.
Underwriter's fee	0.4% of the gross debenture for 20 and 25 years, 0.375% for 10 years	Borrower, from the debenture.
SBA annual fee	0.203% of the outstanding balance	Borrower, ongoing. Waived for manufacturers, food supply chain and rural businesses.
Development company servicing fee	At least 0.625% a year, based on the unpaid balance	Borrower, ongoing.
Senior lien participation fee	0.50% of the bank loan	One time. The bank, the development company or the borrower pays it.

Only the processing fee and the closing costs may be paid up front and left out of the gross debenture. The debenture's interest rate is set when it is sold. SBA's policy says the 10-year Treasury rate is most often the benchmark for the 20 and 25-year debentures and the 5-year Treasury rate for the 10-year debenture, so a rate typed here is only your expectation.

Using it well

Read the project cost, not the bank loan. The bank loan is half the project. Ask a bank for its first-lien terms on that amount, and the development company for the rest.
Check which box you are in. The new business and special purpose boxes change the borrower's share by five points each. That is a real difference in cash at closing.
Expect the fees to ride in the debenture. They add to the debenture, so the borrower's cash at closing stays close to the down payment.

In the data here

The SBA 504 file names the development company, the bank that provided the first lien and its dollars, and the debenture amount, so you can see which banks provide first liens near your size. It carries no lender ID for the bank, so this site joins them by name and state. The file does not hold the down payment or the fees.

Terms used here

SBA 504 loan: A fixed-asset financing in which a bank lends 50 percent or more, a certified development company funds up to 40 percent through an SBA debenture, and the borrower puts in at least 10 percent.
Debenture (SBA 504): The bond a certified development company issues to fund SBA's share of a 504 project. SBA guarantees it in full, and debentures are normally sold once a month.
Third-party lender (SBA 504): The bank or other lender that makes the first-lien loan, usually about half the project cost, in an SBA 504 project. SBA does not guarantee its loan.
Certified development company (CDC): A lender certified by SBA to package, close and service 504 loans and to issue the debenture that funds up to 40 percent of a project.

Sources

SBA SOP 50 10 8.1, Section C Chapters 1 and 3, and Section A Chapter 4 Paragraph E (504 fees), effective October 1, 2026.
SBA Information Notice 5000-881796, 504 fees for fiscal year 2027, published September 3, 2026.

Next step: check the record

Loan Comps for an SBA 504 loanAdd the state to see which lenders have provided 504 first liens near this size.
SBA 504 development companies by projectsThe certified development companies behind 504 projects.

Keep reading

SBA 7(a) or 504: which fits your loan: Both are SBA loans, and they work differently. The choice usually turns on what you are buying and how much cash you can put in.
SBA 504 loan package checklist: A 504 project has three parties, two loans and a closing date set by a monthly bond sale. Build the package for all three.

Estimate from your inputs. Not a quote or advice about which loan to take. Another tool: all calculators.

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