Loan Programs

The SBA’s 504 loan program can help buy real estate, purchase new equipment, and expand the existing space of your small business. Putting as little as 10% down will build equity in your business while preserving working capital and personal equity.

Let GTCC Help you become the next success story in your community.

504 Loan Programs

SBA 504 Debt Refinance Program

Debt-Term Refinance Program

GTCC can provide debt-term refinancing, allowing a borrower to refinance their existing real estate debt. Reflects Program updates as of July 29, 2021.

Benefits of refinancing term debt:

  • Eliminate balloon feature in conventional debt
  • Consolidate debt
  • Lock in long-term fixed interest rates
  • Reduce monthly payments with new amortization and lower rates
  • Improve cash flow and provide working capital

Program requirements:

  • Debt is at least 6 months old at the time of SBA application; a change from two years in previous requirements
  • Existing government guaranteed debt such as SBA 7a is eligible to be refinanced
  • The current 7a lender is required to provide a written statement showing the loan is unable to be modified and that refinancing the 7a debt will provide a 10% substantial benefit to the borrower.
  • Business must have been in operation for 2 years or more
  • At least 85% of the original loan proceeds must have been for qualified purposes (building or equipment)
  • Borrower occupancy must be greater than 51% of building space
  • Up to 85% LTV if cash-out business operating expenses are included
  • Cash-out portion cannot exceed 20% of the overall project cost
  • Same institution debt can be included
  • Reinstate an alternate job retention standard – all existing jobs measured on a full-time equivalent (FTE) basis can be counted as jobs retained by the refinancing project

    Examples of eligible Business Operating Expenses for “cash-out”:

    • Salaries, inventory, rent, utilities, accounts payable or other obligations of the business that were incurred but not paid prior to the date of the application or that will become due for payment within 18 months after the date of the application.

    General Overview Examples:


    • Refinance $4,450,000 real estate note
    • $50,000 closing cost
    • Appraised value $5,000,000


    Bank loan $2,250,000 45.0%
    CDC/SBA Loan $2,250,000 45.0%
    Borrower equity $500,000 10.0%
    Total Project $5,000,000 100%


    • Refinance $1,300,000 real estate note
    • $200,000 for inventory and salary expense for new employee
    • Appraised real estate value $1,500,000
    • Appraised equipment value $500,000


    Total collateral value $2,000,000
    Qualified debt $1,300,000
    Cash-out* $200,000
    Total financing $1,500,000

    *Qualified Business Operating Expenses


    Bank loan $750,000 37.5%
    CDC/SBA Loan $750,000 37.5%
    Borrower equity utilized $500,000 25%
    Total Project $2,000,000 100%


    SBA 504 Debt Refinance With Expansion Program

    The SBA 504 Loan Program has two distinct refinance products: refinance for expansion and term-debt refinance.

    Refinance for expansion:

    This program is utilized when the borrower needs to refinance existing debt and/or use existing real estate equity to accomplish a for sizable expansion. The new funds can be used for:

    • Purchase of land/building
    • Improvements to new or existing building. Can include renovations, conversions, utilities, parking lots
    • Machinery/equipment
    • Eligible soft costs

    One of the main benefits of this program is that the borrower’s existing equity in their property can be utilized to meet the equity requirement into the new project (must meet certain conditions). The refinance will allow the borrower to have a more beneficial long-term fixed interest rate. All other SBA 504 eligibility requirements must be met.

    • The debt amount being refinanced may not exceed 100% of the new expansion cost; previously was 50%.
    • Debt is at least 6 months old at the time of SBA application; a change from two years in previous requirements.
    • Reinstate an alternate job retention standard – all existing jobs measured on a full-time equivalent (FTE) basis can be counted as jobs retained by the refinancing project.

    For example, if the total new project cost is $1,000,000 (including soft costs), the eligible debt refinance amount would be limited to $1,000,000 or 100% of the new dollars spent.

    The debts may consist of one or more fixed asset loans belonging to either the real estate holding company or operating company. Program requirements:


    • The new loan must show 10% significant benefit to the borrower
    • Loan payments must have been current within 30 days for the past 12 months
    • Refinanced debt can be either conventional or previous SBA 504 or 7a Loan
    SBA "Green" Program

    The SBA 504 Loan Program has a “Green” program that is beneficial to the borrower. As businesses expand into new locations new buildings, are often built in an energy efficient manner that benefits both the borrower and the environment. In addition to these benefits, there are additional direct benefits within the 504 Loan Program for going “Green”.

    Why go “Green”? By going “Green”, you accomplish several goals within the SBA 504 Loan Program:

    1. Utilization of the SBA “Green” programs allows a borrower to exceed his overall SBA cap of $5,000,000 per individual. This enables a borrower to continue to utilize the benefits of the 504 Loan Program after they have met their statutory limitation.
    2. If a borrower is utilizing energy reduction or renewal energy, they are eligible for an additional $500,000 in SBA loan financing. This increases the maximum loan that we can provide from $5,000,000 to $5,500,000 (per project).
    3. The associated fees and equipment cost are eligible for financing and will be financed into the project. This includes energy audits, engineering fees, architectural, and equipment cost associated with going “Green”.
    4. Going “Green” meets a SBA Public Policy goal and mitigates the job requirement of 1 new job for every $75,000 in debenture loan amount ($120,000 for manufactures).
    5. Borrower may be able to receive Federal and state energy tax credit benefits for “Green” projects.

    How do you qualify for a “Green” project?

    There are three ways:

    1. The acquisition or construction of a replacement facility, or retrofit of a currently occupied or leased existing facility, with energy saving reduction. (Examples include: improved insulation; lighting; HVAC; efficient windows.) You will need to demonstrate a 15% reduction in energy consumption;
    2. The purchase or construction of a new building must demonstrate renewal energy inorder to generate 10% of its energy consumption from a renewable source (solar panels, wind, turbine or thermal).
    3. Construct a new building to meet Sustainable Design goals. This generally entails meeting LEEDS energy qualifactions.

    Examples of “Green” projects that GTCC has participated in:

    • Warehouses
    • Cold Storage
    • Office Buildings
    • Restaurants
    • Hospitality
    • Assisted Living Facilities

    Call the representative in your area to learn how to move forward utilizing the “Green” program.

    SBA 504 VetLoan Advantage Loan Program

    Are you a veteran?

    If you’re a veteran of the U.S. Military, you can qualify for reduced fees through our VetLoan Advantage program.

    The SBA 504 VetLoan Advantage loan is the best commercial loan for U.S. Military veterans to start or expand their small business. If your business is at least 51% veteran-owned, the VetLoan Advantage program can help you:

    • Purchase real estate for your business
    • Finance expensive equipment
    • Remodel, renovate, and expand your facilities

    Veterans can save up to $20,000 and pay a reduced fee when utilizing the 504 program. Contact us for more information about what the VetLoan Advantage program can do for you.

    Finding the Right Loan

    Small businesses generally have three primary options when it comes to financing real estate and fixed assets for their business. Two of the options are SBA programs (504 & 7a) and the third is done directly by a Bank.

    Each option has its pros and cons. As a borrower and lender, it is important to understand what the pros and cons of each option are before choosing the best to fit the specific needs of your small business.

    Below is a basic analysis of each product. Don’t be persuaded to go with a loan option that is not best suited for your business. In our opinion the SBA 504 program is the best financing option for small business to purchase real estate.


    • Various uses
    • 20-30% down payment
    • Variable or fixed rate typically not to exceed 5 years
    • Property is collateral / may take additional collateral
    • Fees determined by lender
    • Loan typically not assumable
    • Loans typically balloon


    • Commercial real estate and equipment
    • As low as 10% down
    • Bank does 50% and GTCC does 40% of project financing
    • Fixed rate for 20 or 25 years – no balloon / bank must have a minimum term of 10 years
    • Property is collateral / no additional collateral required
    • GTCC fee 1.50% of our loan amount
    • Pre-payment is optional on bank portion; GTCC has 10 year prepayment declining 10% per year. For example: as of January 2015, year 1 prepay is 2.52% (year 5 would be 1.51%)
    • Loan is typically assumable


    • General Purpose
    • As low as 10% down
    • Typically a variable rate
    • Additional collateral may be required
    • Fee is based on guaranteed portion – typically 75% of loan amount. Fee range is 3.00% to 3.75%
    • Pre-payment is 5% for year 1, 3% for year 2, and 1% for year 3
    • Loan typically not assumable

    The GTCC Advantage

    Expertise – Our staff has the knowledge and experience to assist in every aspect of small business financing. Our management team has provided SBA loan services for over two decades, helping hundreds of small businesses achieve their financing goals. We are large enough that we have seen almost every type of financing structure, but small enough that we will know you and your project thoroughly with a “hands-on” approach.

    Communication – We strive to keep our borrowers, lending partners, and referral sources updated throughout the entire loan process. We are readily accessible at all times to assist with every aspect of your qualification, application, approval, and funding process.

    Specialization – While we have knowledge of various forms of government guaranteed lending, we focus our attention on the SBA 504 product and are not distracted by offering multiple loan products. While no two projects are alike, this allows us to expedite loan requests efficiently throughout the process while at the same time being able to tackle even the most difficult and complex projects.