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Business in Utah!


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The 504 Loan Process

Step 1: The Initial Meeting

Small Businesses who think the 504 Loan sounds like it would meet their needs should contact Utah CDC at (801) 627-1333 to set up an initial meeting. The following items should be prepared for the initial meeting:

  • A description of the project
  • An estimate of the total project costs, including estimates on new construction, renovation, machinery, or equipment
  • A purchase agreement or an offer to purchase for any real estate involved in the project
  • Product description and product literature. Be prepared to discuss its competition, the strengths and weaknesses of its product, its method of distribution, and the type of marketing it uses, future plans, and management.
  • Financial statements of the company for the past three years, and an interim statement which is less than 90 days old.
  • Personal financial statements of all individuals with 20% or more ownership in the company

Step 2: Prepare Loan Application

Working with the small business and a private-sector lender, Utah CDC prepares the application package for the Small Business Administration (SBA).

How long will this take? Once the required information is provided to the CDC, the loan application packaging process takes only 2-3 days.

Step 3: SBA Authorizes Your Project & Financing

The completed loan application package must be reviewed by the SBA. When they have approved the package, they will issue an Authorization approving the loan for funding.

How long will this take? Depending on the current workload at SBA, an approval normally takes 3-7 business days.

This means that with a complete package, and the help of Utah CDC, a small business could see an SBA 504 loan packaged and approved in as little as two weeks!

Step 4: Interim Financing

Once the SBA has approved the loan, the private-sector lender will provide interim financing for the purchase or construction project, up to 90% of the total project costs.

Step 5: SBA Loan Closing

Once the purchase of assets has taken place, or new construction is complete, Utah CDC will meet with the small business to finalize the closing documentation necessary for funding the SBA portion of the loan. The final package goes through CDC legal review and is presented to the SBA for funding.

Step 6: SBA Funds the 504 Loan

Approximately 45 days after finalizing SBA closing documents, the 504 loan funds are provided to the private-sector lender. Once the funds are in place, the small business has a first mortgage loan with the private sector lender for approximately 50% of the project costs, and a second mortgage with the CDC/SBA for approximately 40% of the project costs.


Utah CDC



    Ogden Office

     2404 Washington Blvd., Suite 1000

     Ogden, Utah  84401
     Phone: (801) 627-1333
     Fax: (801) 627-6687


Sandy Office....

47 West 9000 South, Suite 1.....

Sandy, Utah 84070.....

Phone: (801) 255-0260 .....
Toll Free: (877) 255-0260 .....

Fax: (801) 255-9382 .....

E-mail: info[at]