Bank Statement for an SBA 504 Loan
SBA 504 loans finance owner-occupied commercial real estate and major equipment through a bank loan paired with a Certified Development Company (CDC) debenture. Both the lender and the CDC review 3 to 6 months of business and personal bank statements to confirm cash flow can support the debt service. This guide covers what to prepare.
Key Benefits
- Documents business cash flow the lender uses for debt-service coverage
- Shows personal liquidity CDCs require alongside the business review
- Supports the down payment verification (typically 10 percent)
- Speeds up the dual-approval process between lender and CDC
How It Works
- Step 1: Download 3 to 6 months of business and personal bank statements as PDFs
- Step 2: Convert them to Excel with Bank Statement Converter to summarize cash flow trends
- Step 3: Reconcile the totals against your tax returns and profit-and-loss statement
- Step 4: Submit the package to your lender and CDC together to avoid processing delays
Frequently Asked Questions
- How many months of statements does an SBA 504 loan need?
- Most lenders and CDCs ask for 3 to 6 months of business bank statements, plus recent personal statements for owners with 20 percent or more equity.
- What's the difference between SBA 504 and SBA 7(a)?
- 504 loans are specifically for real estate and major fixed assets, structured as a bank loan plus a CDC debenture. 7(a) loans are more flexible working-capital loans with a single lender.
- Does the property need to be owner-occupied?
- Yes — SBA 504 requires the business to occupy at least 51 percent of an existing building or 60 percent of new construction.
- Can startups qualify for SBA 504?
- It's difficult. Most CDCs want an operating history with bank statements showing established cash flow, since startups have no track record to underwrite.
Convert Your SBA 504 Statements