SBA 504 LOAN PROGRAM-ADVANTAGES ADVANTAGES TO BORROWER Low downpayment-Can be as little as 10%.  Allows small business owner to preserve critical working capital.  Higher equity injection of 15-20% may be required for start-ups and/or special purpose or limited use buildings. Fixed interest rate-Borrower receives a fixed rate of interest for the term of the loan on the CDC/SBA debenture loan amount of up to 40% of the total eligible project cost. Long term financing-Borrower receives long term financing with a maturity of 10 or 20 years. ADVANTAGES TO LENDER Lower loan to value-Lender typically lends only 50% of eligible project cost. Lower risk-Lender is typically in a first lien position on all project assets. CRA credit-Lender receives CRA credit for lending to small business borrowers. Liquidity-Lender can readily sell the 504 first mortgage loan in the actively traded secondary market. Customer appreciation-Borrower appreciates lender facilitating a financing structure with a low down payment and long term fixed rate financing on the CDC/SBA debenture loan amount.