The 504 Structure
Three parties, one deal — designed to keep borrower costs low on major capital purchases
Third-Party Lender
A bank or other lender provides the senior loan, typically covering up to 50% of the project cost. This portion is not SBA-guaranteed and carries the lender's own terms.
CDC / SBA Portion
A Certified Development Company provides the SBA-backed subordinate loan — up to 40% of the project cost. This is the fixed-rate, long-term piece (10 or 20 years) that makes 504 deals attractive.
Borrower Equity
The borrower contributes at least 10% equity. For startups or special-use properties, the requirement may increase to 15-20%. Lower than conventional lending, freeing up working capital.
Sample Fields
Key fields available in the normalized 504 dataset
| Field | Description | Example |
|---|---|---|
| CDCName | Certified Development Company | TMC Development Corp. |
| ThirdPartyLender | Senior lender on the deal | Wells Fargo Bank NA |
| BorrState | Borrower state | CA |
| ProjectCounty | County where the project is located | Los Angeles |
| GrossApproval | Total project loan amount | $1,200,000 |
| SBAApproval | SBA/CDC portion of the loan | $480,000 |
| ThirdPartyDollars | Senior lender's dollar contribution | $600,000 |
| NaicsCode | 6-digit NAICS industry code | 531120 |
| BusinessType | Entity type of the borrower | Corporation |
| JobsSupported | Jobs retained or created | 25 |
| LoanStatus | Current loan status | EXEMPT |
| ChargeOffAmount | Total chargeoff dollars | $0 |
Analytics Built on 504 Data
Capital expenditure lending patterns across geography, industry, and CDC performance
Geographic Concentration
504 lending is heavily concentrated in specific metro areas. We map county-level and state-level volume, average deal size, and chargeoff rates to reveal where capital is flowing for real estate and equipment purchases.
CDC Performance Rankings
There are roughly 250 active CDCs nationwide. We rank them by origination volume, average deal size, chargeoff rates, and geographic reach — so you can benchmark any CDC against its peers.
Industry Focus Areas
Which NAICS sectors use 504 financing the most? Real estate-related codes dominate, but manufacturing, healthcare, and hospitality are significant. We break down volume and performance by sector.
Chargeoff Trends
504 chargeoff rates are historically lower than 7(a) because the loans are collateralized by real property. We track chargeoff vintage curves, loss severity, and recovery patterns across approval years.
Third-Party Lender Analysis
The senior lender in a 504 deal takes the unguaranteed first-loss position. We track which banks participate most frequently, their average deal sizes, and their geographic footprint in the 504 market.
Deal Size Trends
Average 504 project costs have risen significantly over the past decade, driven by commercial real estate prices. We track deal size distributions over time by region and industry.
Who Uses 504 Data
Built for professionals who need to understand capital expenditure lending
Community & Regional Banks
Benchmark your 504 participation against peers. Understand where CDCs are originating in your market and which industries are driving volume.
CDCs & SBA Lenders
Evaluate your portfolio performance relative to national benchmarks. Identify geographic white space and industry sectors with room to grow.
Fintech & Credit Platforms
SBA 504 data provides a clean signal on small business capital expenditure demand. Use it to calibrate underwriting models and validate geographic risk assumptions.
Get Access to 504 Loan Data
CDC rankings, geographic heatmaps, and chargeoff analytics — ready for your team