• Cumberland Area Economic Development Corporation
  • Serving Cumberland County
  • Pennsylvania’s destination for business and leisure

Small Business Administration (SBA) 504 Program


The Small Business Administration (SBA) 504 loan program provides long-term; fixed rate; low equity economic development financing for small businesses to acquire, improve/construct real estate, and/or purchase major fixed assets for expansion. Download the SBA 504 brochure.

100% Financing Available with SBA 504 Loans – Growing companies often look to conserve cash to solidify their working capital position for the long run, but often growth also requires down-payments on capital purchases for real estate and equipment needs.  Fortunately, SBA 504 financing is available through CAEDC that offers companies expanding an existing facility or acquiring neighboring property for an expansion project an opportunity to finance 100% of their capital project costs.  SBA 504 financing is performed in conjunction with a bank partner and does require a minimum 10% equity injection, however, a company’s real estate “as-is” appraisal valuation less its current outstanding mortgage balance can count toward the equity injection if the new project is taking place at the current facility or on an adjacent property.  In such a case, the typical financing structure is shifted upward so the bank finances about 55% of the new project and the SBA 504 loan finances about 45%.


Midway Bowling Alley

Midway Bowling Center – Carlisle, PA
THEIR SUCCESS: Renovations including new bar area, restored lanes, new gaming tables and shuttle bus.
CAEDC SUPPORT: $257,000 investment through the SBA 504 loan program

Spatacular EscapesSPAtacular Escapes/The Carlisle Group – Mechanicsburg, PA
THEIR SUCCESS: Acquired land and began construction on new office space and spa.
CAEDC SUPPORT: $1,610,000 investment through the SBA 504 loan program

Warrington Farm MeatsWarrington Farm Meats – Dillsburg, PA
THEIR SUCCESS: Expansion to their butcher shop and processing facility.
CAEDC SUPPORT: $595,000 investment through the SBA 504 loan program


  • Land and building acquisition
  • Building construction, expansion and renovation
  • Purchasing/upgrading long-term machinery and equipment


  • Most for-profit, small businesses, including agriculture production
  • Tangible Net Worth < $15 million
  • 2-year Average Net Income < $5 million


  • Up to $5 million or 40% of total eligible project costs (whichever is less)
  • Up to $5.5 million for certain qualifying projects
  • Up to $5.5 million for manufacturers


  • 20-year fixed rate term for real estate
  • 10-year fixed rate term for machinery and equipment
  • 10% equity required
  • 15% equity required for new business projects and/or special purpose real estate
  • 2.2% commitment/closing fee – funded by Debenture. 0.5% Participation Fee is based on the first mortgage loan amount.


25-year effective rate:

  • Standard: 2.74%

20-year effective rate:

  • Standard: 2.61%

10-year effective rate:

  • Standard: 2.38%

As of September 2021


Loans are made in conjunction with a loan secured from a private lender with a senior lien covering up to 50% of the project cost (50% – Private Lender; 40% – SBA; 10% – Borrower).

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