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SBA 504 Loans in Alabama

Browse 15 lenders offering sba 504 loans in Alabama. Compare rates, requirements, and loan programs — then connect directly.

AL Lenders
15
Typical Rate
Below market (CDC portion ~5-6%)
Down Payment
10%
Term
10-25 years
Closing Time
45-90 days

SBA 504 Lenders in Alabama

15 lenders offering sba 504 loans to borrowers in Alabama.

Live Oak Banking Company

WILMINGTON, NC

One of the nation's top SBA 7(a) lenders, specializing in lending to small businesses across healthcare, veterinary, beverage, self-storage, and other industries. Offers SBA loans, USDA loans, conventional business loans, and commercial real estate financing.

628 SBA loans SBA Verified
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The Huntington National Bank

COLUMBUS, OH

Major regional bank and consistently one of the top SBA lenders in the country by number of loans. Offers SBA 7(a) and 504 loans alongside conventional business lending, commercial real estate, and treasury management services.

1337 SBA loans SBA Verified
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Readycap Lending, LLC

BERKELEY HEIGHTS, NJ

Non-bank SBA preferred lender offering SBA 7(a) and 504 loans nationwide. Specializes in commercial real estate, business acquisition, and expansion financing for small businesses. Known for fast closings and flexible underwriting.

563 SBA loans SBA Verified
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Florida Business Development Corporation

Tampa, FL

Certified Development Company (CDC) and top SBA 504 lender in Florida. Provides long-term, fixed-rate financing for major fixed assets like land, buildings, and equipment through the SBA 504 loan program.

104 SBA loans SBA Verified
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Wells Fargo Bank National Association

Sioux Falls, SD

One of the largest banks in the U.S. and a major SBA preferred lender. Offers the full range of SBA programs including 7(a) and 504 loans, alongside conventional commercial lending, commercial real estate, and equipment financing.

220 SBA loans SBA Verified
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Fifth Third Bank

CINCINNATI, OH

Major regional bank and SBA preferred lender with operations across the Midwest and Southeast. Offers SBA 7(a) and 504 loans, conventional commercial lending, equipment financing, and commercial real estate loans.

117 SBA loans SBA Verified
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Cadence Bank

TUPELO, MS

Regional bank serving the Southeast and Texas, and an active SBA preferred lender. Offers SBA 7(a) and 504 loans, commercial real estate lending, equipment financing, and full-service business banking.

132 SBA loans SBA Verified
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United Community Bank

Greenville, SC

Regional bank serving the Southeast and an SBA preferred lender. Offers SBA 7(a) and 504 loans, conventional commercial lending, commercial real estate, equipment financing, and comprehensive business banking.

36 SBA loans SBA Verified
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First Horizon Bank

MEMPHIS, TN

Memphis-based regional bank offering SBA 7(a) loans, commercial real estate, equipment financing, and treasury management. One of the largest banks in the Southeast with a strong small business lending program.

23 SBA loans SBA Verified
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PNC Bank, National Association

WILMINGTON, DE

One of the largest U.S. banks, offering SBA 7(a) and 504 loans, commercial real estate, equipment financing, lines of credit, and comprehensive treasury management. Full-service business banking across the eastern United States.

68 SBA loans SBA Verified
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Regions Bank

BIRMINGHAM, AL

Birmingham, Alabama-based regional bank offering SBA 7(a) and 504 loans, commercial real estate, equipment financing, and business lines of credit. Major lender across 15 southern and midwestern states.

36 SBA loans SBA Verified
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Truist Bank

Charlotte, NC

One of the top 10 U.S. banks formed by the BB&T and SunTrust merger. Offers SBA 7(a) and 504 loans, commercial real estate, equipment financing, lines of credit, and comprehensive business banking nationwide.

13 SBA loans SBA Verified
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Valley National Bank

PASSAIC, NJ

New Jersey-based regional bank offering SBA 7(a) loans, commercial real estate, equipment financing, and business banking. Operates across New Jersey, New York, Florida, Alabama, and California.

15 SBA loans SBA Verified
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Wells Fargo

San Francisco, CA

Top commercial real estate lender. CMBS, balance sheet, agency, and SBA lending across all property types.

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Southern Development Council

Mountain Brook, AL

5 SBA loans SBA Verified
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About SBA 504 Loans in Alabama

SBA 504 loans provide long-term, fixed-rate financing for major fixed assets like commercial real estate and heavy equipment. The loan is split between a bank (50%), a Certified Development Company (40%), and your down payment (10%), resulting in below-market rates on the CDC portion. In Alabama, 15 lenders currently offer SBA 504 financing with loan amounts from $125K to $17M and rates typically ranging from Below market (CDC portion ~5-6%).

Alabama Market Overview

Alabama has attracted major automotive plants from Honda, Hyundai, and Mercedes-Benz, creating industrial CRE demand in the Huntsville-Birmingham-Mobile corridor. The state's low cost of living and business-friendly tax environment continue to draw corporate relocations.

Alabama offers some of the lowest property tax rates in the nation, with commercial properties assessed at 20% of fair market value. The state's Foreign Trade Zones near the Port of Mobile provide significant advantages for industrial and warehouse properties. Opportunity Zone designations in Birmingham and Montgomery have spurred notable redevelopment activity in downtown commercial corridors.

Who Should Consider SBA 504 Loans?

  • Owner-occupied commercial real estate
  • Heavy equipment purchase
  • Business expansion
  • New construction

Key Requirements

  • For-profit business
  • Net worth under $15M
  • Average net income under $5M (after taxes) for prior 2 years
  • 51%+ owner occupancy
  • Create or retain jobs (1 per $90,000 CDC)

Pros and Cons

Advantages

  • Only 10% down payment
  • Below-market fixed rate on CDC portion
  • Long terms (20-25 years for RE)
  • No balloon payments

Considerations

  • Must be owner-occupied (51%+ for existing, 60%+ for new construction)
  • Cannot be used for working capital
  • Longer closing timeline
  • Two closings (bank + CDC)

SBA 504 Loans FAQ

What is a Certified Development Company (CDC)?
CDCs are SBA-certified nonprofit organizations that partner with banks to provide the 504 loan. They handle the SBA-backed 40% portion of the financing.
Can I use SBA 504 for a rental property?
No. SBA 504 requires 51%+ owner occupancy for existing buildings. It's designed for businesses that will operate from the property.
How is the SBA 504 loan structured?
50% from a bank or lender (first lien), 40% from a CDC backed by SBA (second lien), and 10% from the borrower as down payment.

SBA 504 Loans by City in Alabama

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