SBA 504 blended-rate calculator
A 504 project splits three ways: a bank first mortgage for roughly half, a CDC debenture for up to 40 percent, and the borrower's equity for the rest, usually 10 percent. Enter your project cost and both lenders' rates for the split, the blended rate, and the combined monthly payment.
Equity required: 10 percent
percent, usually 40
Suggested from the 10-year Treasury, 4.83% on 2026-09-09, plus sba-504-loans.md's roughly 3-point SBA cost. Editable.
Enter your bank's rate to see the payment.
The split
| Source | Share | Amount | Rate | Term | Monthly payment |
|---|
Indicative only, built from the rates you enter. Not a quote, a commitment, or an offer of credit from either lender. A Certified Development Company and your bank each confirm their own rate and fee schedule at application. SBALoanLenders does not lend and does not set pricing.
How this is calculated
The project splits into three amounts by the percentages above: bank, CDC, and equity. Each loan runs its own standard amortization at its own rate and term, and the two payments add together for the combined monthly cost. The blended rate is the two rates averaged by dollar amount, useful for comparing 504 against one conventional loan, not for predicting the payment by itself.
What this leaves out
This does not include either lender's fees: the CDC's processing fee (up to 1.5 percent of net debenture proceeds), its annual servicing fee, or SBA's own upfront and annual fees on the debenture, all set by regulation and revised most fiscal years. It assumes a standard project; a small manufacturer can reach $5.5 million in CDC funding instead of the standard $5 million cap, and different fee waivers can apply. See how a 504 loan is structured for the full fee schedule and the manufacturer threshold.
Before you call either lender
- Why is the bank rate blank?
- A 504 first mortgage is a conventional commercial loan the bank prices itself, not an SBA-guaranteed product, so no published rate exists to fill it with. Enter the rate your bank actually quotes; a guess here would be more misleading than an empty field.
- Where does the suggested CDC rate come from?
- The 10-year Treasury, published daily by the Federal Reserve, plus the roughly 3 percentage points of SBA-related cost the debenture typically carries on top of it. A CDC confirms the exact figure only once the debenture actually prices, so treat this as a starting point for comparison, not a quote.
- Why does my equity requirement keep changing?
- It is not this calculator deciding; it is the regulation. Ten percent is the floor. A business open two years or less, or a special-purpose property with limited alternative use, each independently raise it to 15 percent, and both together raise it to 20 percent.
- What is the "blended rate" actually useful for?
- Comparing 504 against a single conventional loan on rate alone. It is a weighted average of two loans on different terms, so the two monthly payments added together, not the blended rate, is what actually leaves your account each month.