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SBA 504 Loans in Honolulu, HI

Find lenders offering sba 504 loans in the Honolulu, including Pearl City, Kailua, Kapolei, and surrounding areas. Compare rates, terms, and programs from 6 lenders.

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

Honolulu Commercial Real Estate Market

Honolulu's commercial real estate market operates under extreme land constraints — Oahu's geography limits developable land to a narrow coastal strip, creating some of the highest commercial property values per square foot in the nation. The primary office market concentrates in the Downtown/Capitol District and Ala Moana areas, while Kakaako has become the focus of major mixed-use high-rise development under the Hawaii Community Development Authority's master plan. Ward Village, developed by Howard Hughes Holdings, represents one of the largest master-planned urban communities in the state, blending retail, residential, and commercial space along the waterfront. The Honolulu Rail Transit project (Skyline) connecting East Kapolei to Ala Moana is reshaping development patterns along the 20-mile corridor, with transit-oriented development sites creating new CRE opportunities in Aiea, Pearl City, and Waipahu.

Key Economic Drivers

  • Waikiki and Ala Moana hospitality and luxury retail CRE driven by Pacific Rim tourism
  • Joint Base Pearl Harbor-Hickam and Schofield Barracks military spending
  • Kakaako and Ward Village master-planned mixed-use development
  • Skyline rail transit corridor spurring transit-oriented development in West Oahu

Market Insight

A significant share of Honolulu's commercial properties are held under long-term ground leases from large landowners like Kamehameha Schools and the Queen's Estate, and financing leasehold commercial property requires lender familiarity with Hawaii's unique tenure structure — lease renegotiation risk can materially impact valuations.

SBA 504 Loans in Honolulu, Hawaii

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 the Honolulu metro area, borrowers can access 6 lenders offering SBA 504 financing, including Pearl City, Kailua, Kapolei, and surrounding areas. Loan amounts typically range from $125K to $17M with rates from Below market (CDC portion ~5-6%).

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)

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)

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