Lending Power | Loan Programs & Leadership for small business


SBA 504 Current Rate:


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Structure, Eligibility

& Program Parameters

  • CIC works with the SBA to provide up to 40% of the total project cost.
  • The participating lender, called the “Third Party Lender”, normally finances 50% of the cost on a permanent basis.
  • The borrower typically puts down as little as 10% of the total project cost.
  • The Third Party Lender also advances the CIC 504 portion of the transaction on an interim basis until the CIC 504 loan is funded.



Basic Eligibility

  • Most for-profit small businesses qualify for basic eligibility.
  • Only owner-occupied properties are eligible. A small business must occupy at least 51% of the project property if it is an existing building.
  • The occupancy requirement goes up to 60% for newly constructed buildings.  In addition the Borrower must have the intention and ability to increase to 80% occupancy after 3 years. Excess space can be leased to third parties, but adequate space must come available within 3 years to afford the Borrower an opportunity to expand to 80%. Two or more unrelated small businesses can receive a CIC 504 loan if they combine to meet occupancy requirements.
  • Start-up businesses (less than two years old) are eligible, but require an additional 5% equity injection.
  • A business can obtain more than one loan from the SBA as long as the total outstanding balances do not exceed the maximum loan amount.  One large exception - CIC 504 loans to manufacturers and green projects are viewed as independant transactions. Those businesses may have multiple borrowings that exceed the maximum loan amount.


CIC 504 Project Size

A CIC 504 Project size is virtually unlimited. The 50-40-10 structure is the most common. Applying current loan limits, the maximum non-manufacturing project size under the traditional 50-40-10 structure would be approximately $12.2 million.

That said, a CIC 504 Loan can be a smaller percentage of the financing package. For example, in a $32 million 504 Project the Third Party Lender could provide $24 million in financing together with $4.8 million from CIC 504 financing and $3.2 million from Borrower equity to create a 75-15-10 structure.

Maximum CIC 504 Loan Amounts

  • “Standard” CIC 504 Loans are capped at $5 million.
  • CIC 504 Loans to manufacturing industries within NAICS sectors 31, 32 and 33, are capped at $5.5 million. "Green" projects also qualify for the larger loan size.
  • The CIC 504 Loan amount cannot be greater than 40% of the project cost and cannot exceed the Third Party Lender’s portion of the loan.


Size Standards Qualify MORE BUSINESSES as “Small”

  • To qualify as “small”, the borrower must have less then $15 million in net worth and have averaged less than $5 million in net income over the past two years. 
  • This opens the door for substantial businesses to take full advantage of the larger loan limits.

The quickest and easiest way to determine if a client’s project meets program eligibility requirements is to talk to a loan officer.

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CIC is an economic development lender contributing financial expertise and practical guidance to small business entrepreneurs in Connecticut and Rhode Island who have powerful ideas and need more power to grow them.