Do You Qualify for an SBA 504 Loan?
Type of Business
Over 95% of the nation’s companies are classified as “small businesses” by SBA standards. Limitations are set by net profits, net worth and total employment according to industry.
Almost every type of business qualifies for SBA financing: manufacturing, wholesale, service, retail. Loans cannot be made to speculative businesses like mining, investing or most businesses engaged in gambling activities. Lenders, insurance companies, or any passive businesses like landlords or investors are also precluded. Businesses must be legal (no cannabis related businesses). As of March 1, 2026 all businesses must be 100% US citizen owned (no LPR’s) this includes any indirect ownership as well. Your ACC Business Development officer can answer any questions or concerns you might have.
Project Size
Projects can be modest — sometimes as low as $500,000 — or scale into the millions. There’s technically no cap on total project cost, though projects over $10,000,000 are less common. And face additional scrutiny.
Your Contribution
Most borrowers bring about 10% to the table as a down payment. Certain circumstances require an additional 5% such as single use properties (hotels, car washes) and new businesses. SBA considers any business with less than 2 years of operating history of the current ownership a new business.
Business History
We typically work with businesses that have been operating for at least two years, with steady cash flow and proven management.
Where You’re Located
If your project is in Arkansas, Memphis MSA or Texarkana MSA, Six Bridges Capital (an affiliate managed by ACC Capital) will act as your CDC and partner with the lender of your choice.
Projects in all other states and US territories will qualify through ACC Capital’s national SBA 504 program. ACC will act as the 1st lender and work with the appropriate CDC in the project state.
About Six Bridges Capital Corporation
Six Bridges Capital Corporation (6BCC), founded in 1989, is a SBA Certified Development Company (CDC) and affiliate managed by ACC. Through the SBA 504 loan program, Six Bridges has helped Arkansas entrepreneurs and small businesses invest in their futures for decades.
Today, ACC Capital has expanded its mission nationally — still deeply rooted in Arkansas, but now offering stronger resources, broader lending products, and long-term financing to businesses across the U.S.
SBA 504 Loan – What’s it all about?
Use of Funds
Purchase land for construction or existing commercial real estate, build or renovate, purchase major equipment and cover project costs like architects, engineering and equipment installation.
How the Loan is Structured
The financing is structured with two loans. Loan #1 is provided by the lender and typically amounts to 50% of the project amount. The second loan is provided by a CDC (Certified Development Company), acting as an agent for the SBA that will provide up to 40% of the financing package. The borrower typically provides the remaining 10% of the project amount. New businesses and certain types of real estate may require an additional 5% injection from the borrower.
Loan Size
SBA’s share (CDC) is typically limited to $5 million — or $5.5 million for manufacturing and energy-efficient projects. The lender’s share has no cap, so many larger projects can be accommodated.
Repayment Terms
1st Lender – Terms are determined by the lender, typically 10 years for real estate, amortized over a 20- or 25-year term. Talk to your Business Development Officer for pricing on your project.
CRC (2nd loan) – 10 years for most equipment and up to 25 years for commercial real estate. Loans are fully amortizing meaning there is no ballon payment at maturity.
Interest Rates & Prepayment
1st Lender – Rates, terms and prepayment penalties are determined by the lender – Talk to your Business Development officer for pricing on your project.
CDC (2nd loan) – Long term fixed rate, below market financing (20–25 years for real estate and 10 years for equipment). No balloon payments — everything is fully amortized. Talk to your Business Development Officer for the current fixed rates.
The SBA portion comes with a fixed, predictable rate. Prepayment penalties apply if you pay off early, but they decline over time.
Costs & Fees
Expect standard fees like a small SBA funding fee, the 1st lender may charge processing and underwriting fees as well as closing costs, plus the usual legal, appraisal and other third party expenses.
Collateral & Guarantees
The 1st lender holds the first lien. The CDC, 2nd lender, holds the second position. Owners with 20% or more ownership must provide personal guarantees. A strong business track record, solid cash flow, and experienced management are important.
*Fees, penalties and guarantees are subject to terms and conditions. For more information, contact our Business Development Officers.
Frequently Asked Questions
We know the SBA 504 loan process can raise a lot of questions. Here are answers to some of the most common ones to help you understand eligibility, costs, and how the program works.