155 S Main St – #403

Providence, RI 02903

401-453-0118

Fax: 401-454-4890

"We Grow Small Business"

SBA 504 Program

Understanding SBA 504 Loans

OSBDA is proud to present the below information videos on the basics of the SBA 504 Program.

Introduction to the 504 Program:

Eligible use of Proceeds:

Purpose of the Program

The US Small Business Administration 504 Program is designed to provide financing for the purchase of fixed assets at a fixed rate throughout the entire life of the loan. Operating as a Certified Development Company (CDC), Ocean State Business Development is a nonprofit corporation established to contribute to the economic development of local communities in Rhode Island, Massachusetts, and Connecticut.

Why it is Beneficial

  • Long-term fixed rate financing at below market rates (typically below the Bank rate).
  • Customer can obtain up to 90% financing
  • the Bank, Credit Union, or Financial Institution receive an enhanced loan-to-value (LTV); which may expedite the approval/ closing process

The 504 programs gives the borrower the advantage of having a fixed rate for the entire life of the loan (10/20/25 years). This hedges the borrower from any interest rate volatility associated with a typical, shorter term, conventional bank loan; which contains adjustable rates or “balloon” payments. The stable interest rates provide one less variable for business owners as they project future cash flows.

The 504 program gives business owners peace of mind, so that they can plan their future cash flows!

Our Process

Our team will guide you through the process from application to closing. We here at OSBDA pride ourselves in customer service and emphasize communication with Banks, and most importantly our Borrowers. We understand that a business owner’s most important commodity is their time. Our lenders will work with you to ensure satisfaction throughout the entire process.

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