Most businesses qualify with just 10% down. The down payment for an SBA 504 loan can be influenced by several factors:
- Start-Up Businesses: If your business has less than a 2-year operating history or is undergoing a management change, it is considered a start-up business. Start-up businesses are subject to a 15% down payment.
- Special Use Properties: If the property being financed is classified as “Special Use” (e.g., hotel, car wash, gas station), a 15% down payment is required.
- Start-Up with Special Use Property: If your business is both a start-up and the property is considered a special use asset, the required down payment increases to 20%.
These adjustments ensure that the loan terms reflect the increased risk associated with new ventures and specialized properties.