🏢

SBA 504 Loans in Fargo, ND

Find lenders offering sba 504 loans in the Fargo, including Moorhead, West Fargo, 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

Fargo Commercial Real Estate Market

Fargo-Moorhead is the largest metro area in North Dakota, with a diversified economy that has outperformed the state's oil-dependent western region during energy downturns. The downtown Fargo submarket has seen significant reinvestment along Broadway and the adjacent Innovation District near North Dakota State University, where tech startups and coworking spaces have clustered. The West Fargo corridor along I-94 is the primary growth area for retail and industrial development, benefiting from strong population growth that has made Fargo one of the fastest-growing small metros in the Midwest. Healthcare anchors from Sanford Health and Essentia Health drive consistent medical office demand across the metro.

Key Economic Drivers

  • North Dakota State University research and technology transfer fueling the downtown Innovation District
  • Sanford Health's regional headquarters and medical campus generating sustained healthcare-related CRE demand
  • Microsoft's Fargo campus and a growing base of tech companies including Appareo Systems and Packet Digital
  • Agricultural services and food processing companies like Cass-Clay Creamery supporting industrial space absorption

Market Insight

North Dakota has no corporate income tax on the first $25,000 of taxable income and offers a Renaissance Zone program in downtown Fargo that provides up to five years of income and property tax exemptions for qualifying commercial investments.

SBA 504 Loans in Fargo, North Dakota

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 Fargo metro area, borrowers can access 6 lenders offering SBA 504 financing, including Moorhead, West Fargo, 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)

Find SBA 504 Lenders in Fargo

Get matched with lenders offering sba 504 loans in the Fargo, ND area. Free for borrowers.

Get Matched — Free →