Rates differ between each lender and depend on the overall credit risk of the business.  Conventional loans can carry floating or fixed interest rates.

Loan structure negotiable dependent on risk.

Typical down payment ranges from 25%-35%

Fees can be financed in the conventional loan and vary with the size of the loan.

Generally, project assets being financed are used as collateral.

Fixed Interest rates on 504 loans are set monthly at the time of funding at an increment above the current market rate for five-year and ten-year U.S. treasury issues.

50% bank loan

40% CDC loan

10% borrower down payment

Fees are financed in the 504 loan and are negotiated for the 50% bank loan.

Generally, project assets being financed are used as collateral.

Loan structure negotiable dependent on risk.

10% down payment (minimum)

Fees can be financed in the 7A loan and vary with the size of the loan. An additional 0.25% is charged on any loan portion above $1 million.

Project assets being financed are used as collateral along with a pledge of personal residence, unless bank can justify why unnecessary.

SBA 504


Current SBA 504 Interest Rate
2.76% and up
June 2021 | 20-year Term

Jacky Dilfer | 213 999 1481 |

Variable rate adjusted quarterly.  Interest rates are negotated between the borrower and the lender subject to a mandated SBA ceiling and floor


I         N         T         E         R         E         S         T                   R         A         T         E         S

L         O         A         N                   S         T         R         U         C         T         U         R         E

C         O         L         L         A         T         E         R         A         L

F         E         E                   S         T         R         U         C         T         U         R         E

The Loan Structure

Business Finance Capital (BFC) partners with lenders to provide up to 90 percent financing to businesses for the purchase of owner-occupied commercial real estate and equipment. BFC provides up to 40 percent of the financing and the lender typically provides 50 percent. Business owners pay as little as 10 percent down.



Borrower pays 10 percent of project costs using cash, prepaid project-related expenses; equity of 15-20 percent is required for start-up businesses and purchase of single-use properties such as hotels, car washes, and gas stations.



BFC makes an SBA-guaranteed loan of up to 40 percent of project costs, plus SBA loan fees, and is secured by a 2nd Deed of Trust; the total loan amount depends on the type of business and project.



A bank, credit union or other non-bank lender makes a commercial loan, typically 50 percent of total project costs, which is secured by a 1st Deed of Trust.



Current Conventional 
Interest Rate
2.88% and up
June 2021
5-year Term

Current Conventional
Interest Rate
3.48% and up
June 2021
10-year Term

Peter Drake | 213 345 2254 |


From comprehensive financing through full-service support

Take advantage of a full-service relationship with a leading lender. When you work with Bank of America Merrill Lynch, you get hands-on support from a dedicated business development officer who delivers the expertise and market insight of our specialists along with a comprehensive range of financial solutions to create opportunities for success. From innovative ideas through competitive pricing and multiple loan structuring options, we partner with you at every step of the sales process.


It’s the loan program that opens doors

Bank of America Merrill Lynch delivers both long- and short-term repayment options to help your clients purchase or refinance a range of owner-occupied commercial properties.


Preferred lending solutions from a market leader

Count on Bank of America Merrill Lynch for preferred lending solutions that get results:

Quick turnaround

  • Expedited commitment letter delivery

  • Underwriters who know your project’s details and can make faster decisions

Customized marketing campaign

  • Marketing expertise from one of the world’s largest companies

  • Customized co-marketing to finance your advertising outreach

  • Selection of sales materials customized with your property’s details

Preferred lender discounts

  • Lower closing costs, including negotiated bulk discounts

  • Below market pricing


Extensive product selection for your clients

Conventional loans

Fulfill your clients’ real estate needs with one of the broadest owner- occupied financial platforms in the industry today:

  • Competitive fixed and variable rates for owner-occupied properties y Innovative financing options

  • Low monthly payments and down payments

  • One-time, fixed-rate conversion option

  • Multiple funding uses

  • Simplified application and appraisal