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SBA 504 Loans

The objective of the SBA 504 loan program is to achieve community economic development through job creation and/or retention, or other economic development impacts by providing long-term fixed asset financing to small business concerns.

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Meet Katie

In this video our Senior Closing and Servicing Specialist walks you through how Altura can help your small business. 

Finance Terms

The SBA 504 loan may finance up to 40% of an eligible project, not to exceed $5,000,000 ($5,500,000 for manufacturing firms).  The borrower is required to inject at least 10% (not to exceed 20% depending on circumstances).  The borrower’s bank provides the remaining amount, typically 50%.

Business Eligibility

Eligible small businesses include those with fewer than 500 employees, or who have an aggregate business net worth of less than $15 million dollars, and/or an aggregate net profit of less than $5 million dollars. They must be for profit companies with a sound business purpose, and demonstrate sufficient economic impact through the project.

Interest Rate

The interest rate is a fixed rate set by the sale of a Debenture (or type of commercial bond), which funds the SBA 504 loan, and is guaranteed 100% by the SBA. The interest rate is generally set at a fixed price slightly above the 5 and 10 year Treasury bill rates, and will remain fixed for the term of the loan. Terms are 10 years for Equipment loans, and 20 or 25 years for Real Estate loans.

Project Eligibilty

An eligible project can include: plant acquisition, new construction, renovations or expansions, acquisition of machinery, equipment and fixtures, partner buyouts, land and site improvements, and certain eligible soft costs associated with the above.

SBA 504 Effective Rates

Interest rates are determined by SBA and change on a monthly basis.


25-Year Rate


20-Year Rate


10-Year Rate

Listen to What Our Partners are Saying

Zions Bank

“Understanding what Altura can provide through their loan programs is invaluable.”

Titan Fuel Tanks

“We are very grateful for the support and financing provided to help Titan Tanks take that next step toward our future growth”

Buildings Financed Through SBA 504 Loans

Northstar Healthcare

Pro Lube

Rigby Pediatric Dental

Manwaring Cheese & Gelato

Teton Vision Center

Vega’s repair

“Altura helped us to build a state of the art facility and acquire equipment that has the latest technology, making us very competitive in our industry. This has allowed us to have continued growth each year and for years to come.

Rylie Roberts

Cutting edge cabinets

“We were put in contact with Katie Cook at Altura to help us through the SBA loan process.  She was very helpful in helping us understand everything and helped keep things moving smoothly through closing on the note.  Whenever I have any questions, she is very quick to respond to my questions.  I am grateful for their help when we obtained the refinancing we needed four years ago!”



Altura Business Finance has helped us out tremendously in acquiring properties that otherwise would have been out of our budget.  Katie made it easy and walked us step by step through the entire SBA process when we purchased the Timberline Home building.  When we decided to expand our business and purchase the Outlet building, we contacted Katie and just like the first go around it was simple and easy.  Altura has definitely contributed to our success and has helped us invest in the future by owning buildings and not renting them.  I highly recommend using Altura to start or to grow your business.



Although we are third generation owners of a business that had been around for more than 75 years, we felt lost as we considered expanding. The investment in building a new building in a city that we hadn’t done business in before was overwhelming. All the crew at Altura took us by the hand and walked us through our options and what we needed to do, step by step. They even introduced us to a grant that we could apply for to help with the development. There is no way we would have been able to know all of the options or even where to begin with securing financing if it hadn’t been for their help. They were also very patient with us asking the same questions multiple times. We will definitely look to Altura Business Finance to help us as we continue to grow and serve our customers.



Altura was great to work with when building our new clinic. They were proactive, always on the ball and even ahead of things. They were right there when I needed them to answer questions and the process was hassle free and barely any time on my part. Through the COVID-19 pandemic they made me aware of benefits and programs and helped with all the paperwork. They got relief and extra funding where possible during the pandemic that helped our business through those hard times. Without hesitation I would recommend Altura Business Finance and Katie Cook to any small business starting out and staying on their feet.



Frequently Asked Questions

What is the SBA 504 loan program?

The 504 loan program provides long-term, fixed rate financing to small and mid-sized businesses. These loans can be used for the purchase of equipment and commercial real estate to promote business growth and job creation.

What are the main advantages of the 504 loan?

The SBA 504 loan allows a lower down-payment of only 10% (15-20% in some cases). Repayment terms are longer (10, 20 and 25 year options) accompanied with a fixed rate for the term of the loan. Overall the loan offers borrowers with access to capital at favorable terms to facilitate business expansion for long term planning.

How long is the approval process?

Every loan is different and requires a different timeframe. Altura works closely with your bank to make sure the process goes smoothly. Once we receive all required borrower information, we can typically receive internal approval within 2-3 weeks. After internal approval is obtained, the loan is sent to SBA for their review which typically takes 2-4 weeks. After SBA approves the loan our closing department will work with you to get your loan funded. This timeline is dependent on several different factors and can vary.

What are the maximum loan amounts?

The SBA participation amount has a maximum of $5 Million ($5.5 Million for manufacturing firms).

Are there any fees involved?

Most of the fees are built into the loan.  There is a 1.5% origination fee, 0.5% SBA Guaranty Fee, 0.25% funding fee and a variable Underwriters Fee determined by SBA.  Your bank will also collect a 0.5% participation fee. There are a few other fees associated with closing which will be discussed with you at the time of application.

Are there any prepayment penalties?

There is a prepayment penalty for the first 5 years of a 10 year term and for the first 10 years of a 20 or 25 year term.  The prepayment amount goes down every six months and is based off the outstanding balance.  Once the 5 or 10 year timeframe has passed, there is no longer a prepayment penalty.

Is my business eligible for a 504 loan?

To be eligible, your business must operate as a for-profit company in the United States with a net profit after taxes of no more than $5 million and tangible net worth of not more than $15 million.

How many 504 loans can I have?

A borrower can have more than one outstanding SBA loan, however the total amount of all loans combined cannot exceed $5 million.

What is my loan balance?

Contact Katie Cook for information regarding your loan balance.


Phone: (208) 589-4281