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The Corporation for Economic Development in Des Moines
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SBA 504 Loan Program

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Long-term, Fixed Rate Financing
SBA 504 loans offer 10- or 20-year fixed asset financing on up to 40% of eligible project costs to qualifying businesses.

Low Equity Contribution
A 504 loan helps your small business conserve cash for working capital needs. 504 loans require as little as a 10% equity contribution for expansion of existing businesses, a 15% equity contribution for new 
businesses and a 20% equity contribution for speciality buildings.

Below-Market, Fixed-Interest Rate
Interest rates on a 504 loan are typically lower than other longterm, fixed rate financing. Historically, the 
effective interest rate on a 504 loan is about 200 basis points above the US Treasury Bill Rate.

Eligible Project Costs
The 504 loan program can finance the purchase of land and buildings, new construction or renovations to buildings, machinery and equipment with a useful life of at least 10 years and associated project costs, e.g. professional fees and interim construction financing — but are not available for purchase of rolling stock, inventory or working capital.

Eligibility Standards
A 504 loan is designed to meet start-up and expansion needs of for-profit corporations, partnerships and proprietorships with a net worth smaller than $15 million and an average net income of $5 million or less for the last two years.

Our Mission

Our mission is to enhance economic development in the City of Des Moines and the Greater Des Moines area.

Our goal is to make the funding programs we administer straightforward and easy to access.


Typical 504 Structure
1st Mortgage                         50%
Bank Minimum
7- or 10-Year Term

2nd Mortgage                         40%
504 Debenture
10- or 20-Year Term; Fixed Rate

Borrower Equity                     10%
Cash or Land

The maximum 504 involvement is 40% of eligible project costs, not to exceed $5,000,000. Maximum loan size may be increased upwards to $5,500,000 for manufacturers and energy saving businesses. There is no maximum on eligible project costs.

Loan Fees and Closing Costs
A 504 Loan can be done with no
out-of-pocket cost to the small
business. Loan fees and closing costs
are financed as part of a 504 loan.
Typically, 504 loan fees equal three
percent of the net loan plus $1,500
in closing costs.
Copyright 2017 • The Corporation for Economic Development in Des Moines
2331 University Ave., Suite 203
​PO Box 41452
​Des Moines IA 50311

Email:  ced@ceddm.com
Phone:  515-512-1613
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