SBA 504 Program

Holyoke Credit Union offers the SBA 504 Program to encourage business expansion and job creation. This unique program provides up to 90% long-term, fixed-rate financing for real estate acquisition, renovation, expansions, and equipment purchases. The SBA 504 Program is available to small to mid-sized businesses with employees. 


  • Available for a variety of uses, including the purchase of existing property or land, as well as new construction
  • 90% financing (10% down payment)
  • Owner-occupied real estate and equipment
  • Below-market fixed rates
  • Financing available for many SBA-related fees/closing costs
  • 20-year fixed rate and 10-year fixed rate on equipment (on the SBA second loan)


  • Most for-profit businesses (corporation, partnership, or proprietorship)
  • Operating company must occupy 51% of existing building or 61% with new construction
  • The net worth of a business must not exceed $15 million and the net income after taxes cannot exceed $5 million.
  • The average net profit after taxes must not exceed $2 million (average over the last two years). Check with an SBA specialist if maximums are close or exceeded.
  • Maximum project size is $6 million for non-manufacturers and $10 million for manufacturers.
  • Equity requirement is 10%. An extra 5% is required for a start-up business (two years or less) or a single-purpose building (10% additional if both are applicable). 

Loan Uses

  • Purchase or renovation of an existing owner-occupied building
  • Modernization, renovation, or restoration of a building, including household improvements
  • Purchase of equipment with economic useful life of 10 years or more
  • Other attendant soft costs such as accountants, engineers, appraisers, construction period interest
  • Purchase of land
  • 10% contingency on a real estate construction project

Ineligible use of proceeds

  • Working capital
  • Debt consolidation or repayment
  • Inventory
  • Refinancing (though you may be able to refinance an existing first mortgage of an existing SBA 504 deal)

How to Apply

Three easy ways to apply:

  • Visit the Holyoke Credit Union main branch at 490 Westfield Road, Holyoke, MA 01040
  • Email Commercial Lender, Dan O’Neill, at
  • Call Dan O’Neill at (413) 532-7007 ext. 1125 for an appointment.