- SBA guarantee fees and CDC processing fees are built into the loan - Many fees can be **financed into the loan**, reducing out-of-pocket closing costs - No balloon payments on the SBA debenture portion ---

SBA 504 Loan for Commercial Real Estate in Savannah GA (2026)

Q: What Is the SBA 504 Loan Program?

The [SBA 504 loan](/sba-loans) is a government-backed financing program designed specifically for the acquisition, construction, or improvement of fixed assets — most commonly **owner-occupied commercial real estate**. It is administered through the U.S. Small Business Administration in partnership with Certified Development Companies (CDCs) and traditional lenders. Unlike a conventional commercial mortgage, the 504 loan uses a **three-party structure**: - **Bank or private lender** covers appro

Q: Business Eligibility Requirements

- The business must be **organized or incorporated in the United States** or its territories - All **direct and indirect owners** must have a **primary residence in the United States** or its territories - The business must be **for-profit** and operate within an eligible industry - **Net worth** must be below $20 million and **average net income** must be below $6.5 million after taxes for the preceding two years - The property must be **owner-occupied** — typically at least 51% for existing bu

Q: Disqualifying Factors

Some businesses are automatically ineligible. **Do not apply if:** - Your business has **delinquent federal debt** or an open federal tax lien - A prior SBA loan resulted in a **loss to the government** - The business has **entered into a side agreement** that gives a non-guarantor owner or investor control over business decisions - The business or any owner has a history that would flag negatively under a **CAIVRS** check (Credit Alert Verification Reporting System), which all SBA lenders are r

Q: Current Rate Environment (2026)

With the WSJ Prime Rate currently at **6.75%**, conventional commercial real estate loans carry significant rate risk over time. The SBA 504 CDC debenture rate is set separately through the bond market and is typically **below market rates** for equivalent loan terms, making it especially attractive for long-term real estate holds. The **bank/lender portion** (the 50% first mortgage) is typically priced at or near prime-based rates, but because it represents only half the project cost, the blend

Q: How to Apply for an SBA 504 Loan in Savannah, GA

Applying for an SBA 504 loan involves both a **CDC partner** and a **conventional lender**. Here's a simplified overview of the process: 1. **Assess your project** — Identify the property or asset, confirm owner-occupancy requirements, and estimate total project costs 2. **Gather financial documents** — Two to three years of business and personal tax returns, a current balance sheet, profit and loss statements, and a business plan or use-of-proceeds summary (see our guide: [How to Write an SBA B

SBA 504 Loan for Commercial Real Estate in Savannah, GA (2026)

Savannah's economy is booming. From the Port of Savannah — one of the busiest container ports in North America — to the thriving tourism corridor along River Street and the rapid commercial development along the I-16 and I-95 corridors, Georgia's Coastal City is a prime destination for business investment. If you're a small business owner looking to purchase, build, or renovate commercial property in Savannah, the SBA 504 loan may be the most powerful financing tool available to you.

This guide breaks down exactly how the SBA 504 program works, what it costs, who qualifies, and how Savannah-area business owners can use it to secure their next commercial real estate move.

What Is the SBA 504 Loan Program?

The SBA 504 loan is a government-backed financing program designed specifically for the acquisition, construction, or improvement of fixed assets — most commonly owner-occupied commercial real estate. It is administered through the U.S. Small Business Administration in partnership with Certified Development Companies (CDCs) and traditional lenders.

Unlike a conventional commercial mortgage, the 504 loan uses a three-party structure:

Bank or private lender covers approximately 50% of the total project cost
CDC (SBA-backed) covers approximately 40% of the project cost via a fixed-rate SBA debenture
Borrower contributes as little as 10% down

This structure dramatically reduces the capital a Savannah business owner needs upfront. On a $1.5 million commercial property purchase in, say, the Midtown Savannah or Pooler corridor, a borrower may only need to bring $150,000 to the table instead of the $300,000–$450,000 typically required under conventional financing.

For full program details, visit SBA.gov's 504 Loan Program page.

Who Qualifies for an SBA 504 Loan in Savannah, GA?

The SBA 504 program has clear eligibility requirements that all applicants must meet. Understanding these rules upfront can save you significant time in the application process.

Business Eligibility Requirements

The business must be organized or incorporated in the United States or its territories
All direct and indirect owners must have a primary residence in the United States or its territories
The business must be for-profit and operate within an eligible industry
Net worth must be below $20 million and average net income must be below $6.5 million after taxes for the preceding two years
The property must be owner-occupied — typically at least 51% for existing buildings, or 60% for new construction

Disqualifying Factors

Some businesses are automatically ineligible. Do not apply if:

Your business has delinquent federal debt or an open federal tax lien
A prior SBA loan resulted in a loss to the government
The business has entered into a side agreement that gives a non-guarantor owner or investor control over business decisions
The business or any owner has a history that would flag negatively under a CAIVRS check (Credit Alert Verification Reporting System), which all SBA lenders are required to run

SBA lenders like Indymae will verify all of these conditions as part of the underwriting process.

SBA 504 Loan Rates and Terms for 2026

One of the most attractive features of the SBA 504 program is its long-term, fixed-rate structure on the CDC portion of the financing. For Georgia business owners purchasing commercial property, this means predictable monthly payments over a 10-, 20-, or 25-year term — even in a shifting rate environment.

Current Rate Environment (2026)

With the WSJ Prime Rate currently at 6.75%, conventional commercial real estate loans carry significant rate risk over time. The SBA 504 CDC debenture rate is set separately through the bond market and is typically below market rates for equivalent loan terms, making it especially attractive for long-term real estate holds.

The bank/lender portion (the 50% first mortgage) is typically priced at or near prime-based rates, but because it represents only half the project cost, the blended effective rate for the borrower remains competitive. If you’re weighing other SBA options, compare the 504 to general SBA Loans or the SBA 7(a) Express program to determine the best fit for working capital versus fixed-asset financing.

Fees to Know

SBA guarantee fees and CDC processing fees are built into the loan
Many fees can be financed into the loan, reducing out-of-pocket closing costs
No balloon payments on the SBA debenture portion

Eligible Uses of SBA 504 Funds in Savannah, GA

For Savannah-area business owners, the SBA 504 loan covers a wide range of commercial real estate and fixed-asset needs:

Purchase of owner-occupied commercial property — retail storefronts on Broughton Street, warehouse space in Garden City, medical offices near Memorial Health, or light industrial space in Pooler (see more about SBA loans in Savannah)
Ground-up construction of a new commercial facility — a common use case covered in our article on SBA Loans for Savannah Construction Businesses 2026
Renovation or expansion of an existing building
Purchase of heavy equipment with a useful life of 10 or more years (as a standalone or combined project) — often combined with Equipment Financing
Refinancing of eligible existing commercial real estate debt under certain qualifying conditions — sometimes coordinated alongside Bridge Funding strategies

Real-World Example: Savannah Restaurant Group

Imagine a restaurant group based in the Historic District wants to purchase a $2 million mixed-use building on Jones Street to house their flagship location. Under the SBA 504 structure:

Lender first mortgage: $1,000,000 (50%)
CDC / SBA debenture: $800,000 (40%)
Borrower down payment: $200,000 (10%)

Instead of needing $400,000–$600,000 for a conventional down payment, the owners move forward with $200,000 — preserving working capital for buildout, staffing, and inventory.

How to Apply for an SBA 504 Loan in Savannah, GA

Applying for an SBA 504 loan involves both a CDC partner and a conventional lender. Here's a simplified overview of the process:

Assess your project — Identify the property or asset, confirm owner-occupancy requirements, and estimate total project costs
Gather financial documents — Two to three years of business and personal tax returns, a current balance sheet, profit and loss statements, and a business plan or use-of-proceeds summary (see our guide: How to Write an SBA Business Plan in Savannah, GA (2026 Guide))
Connect with a lender — Work with an SBA-experienced lender like Indymae who can coordinate with a Georgia-based CDC on your behalf
Complete SBA forms — Including the standard SBA application, personal financial statements, and authorization for the CAIVRS check
Underwriting and approval — Both the lender and the CDC review your file; the SBA provides final authorization on the debenture
Close and fund — Closings involve both the bank loan and the CDC debenture, which are coordinated together

According to the U.S. Small Business Administration, the 504 program has helped thousands of small businesses across the country secure long-term, affordable financing for commercial assets — and Georgia continues to be one of the most active states in the program.

Why Work With Indymae for Your Savannah SBA 504 Loan?

Navigating SBA financing on your own can be complex — especially when coordinating between a conventional lender, a CDC, and SBA underwriting requirements. Indymae specializes in commercial SBA lending and works directly with Savannah-area business owners to simplify the process from pre-qualification to closing.

Whether you're acquiring your first commercial building in Savannah's growing Southside district, expanding a healthcare practice near Eisenhower Drive, or constructing a warehouse near the Port of Savannah logistics hub, Indymae brings the expertise to structure your deal correctly the first time.

Ready to explore SBA 504 financing for your Savannah commercial real estate project? Contact the Indymae team today for a no-obligation consultation and find out how much you may qualify for under the 504 program, or explore other options like Business Term Loans and a Business Line of Credit to complement your capital plan.