SBA 504 Loan Program Dayton, OH

Q: What are the SBA 504 Refinance Eligibility Guidelines?

Almost any owner-occupied property will qualify : minimum 51% owner-occupied and meet all other SBA 504 eligibility guidelines at time of application Existing loan must be at least 6 months old Business must be at least 2 years old At least 85% of existing loan must have been for SBA 504-eligible purposes Loan may be subject to a federal agency guarantee (meaning existing SBA 504 or 7(a) loans may be eligible) but the original lender must be unwilling to adjust the terms Other assets can be used as collateral to get to 90% LTV Up to 20% of the appraised value can be used for cash out for other business expenses Appraisal not due at application, but will be required for funding

The United States Small Business Administration (SBA) 504 loan program is the key to unlocking your business’s growth potential. These federally backed loans, facilitated by Certified Development Companies (CDCs) like Alloy in partnership with banks or other lenders, offer small businesses in Dayton, OH access to long-term, low, fixed-rate financing. With an SBA 504 loan, you can secure the funds needed for owner-occupied commercial real estate and heavy machinery projects, fueling your business’s expansion and success.

Experience the benefits of these SBA real estate loans firsthand. Preserve your valuable cash reserves for day-to-day operations while securing the financing necessary to take your business to new heights. Promote business growth and economic development with an SBA 504 loan—your gateway to a brighter, more prosperous future.

Loan Rates (as of September 2026)
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25 Years:
as low as

6.54%

20 Years:
as low as

6.53%

10 Years:
as low as

6.60%

We Make It Easy For You

At Alloy Development Co., we understand that navigating the world of commercial financing in Daytoncan be complex. That’s why we’ve streamlined our process to make securing an SBA 504 loan as smooth as possible for both lenders and small business owners. As Ohio and Kentucky’s top Certified Development Company (CDC), we bring decades of expertise to every project.

Expert Guidance

Our team of SBA loan experts handles all the intricate paperwork, processing, and review required by the SBA, allowing you to focus on what matters most — growing your business. Our focus on 504 loans in Dayton allows us to provide in-depth expertise for eligible projects.

Streamlined Application Process

Whether you’re a banker looking to mitigate risk or a small business owner seeking to purchase real estate or heavy machinery, Alloy’s got you covered. Our extensive experience and specialization in SBA 504 loans mean we can guide you through every step of the program with authoritative knowledge and efficiency.

Private Lender

Alloy SBA 504 Loan

Borrower Down Payment

SBA Loan Structure: 50% - 40% - 10%

Source	Percent	Amount	Security
Bank/Private	50%	$500,000	1st Mortgage/Lien
Alloy	40%	$400,000	2nd Mortgage/Lien
Business Borrower	10%	$100,000	Cash
Totals	100%	$1 million

Why This Program is Right for Your Project

SBA 504 loans help small businesses in Dayton preserve working capital by offering long-term, fixed-rate financing for major fixed assets. This allows them to invest their cash reserves in day-to-day operations and growth opportunities.

Immediate and Long-Term Benefits for Small Businesses

Longer loan amortizations, no balloon payments
Below market fixed interest rates
Savings that result in improved cash flow for small businesses

Benefits for Lenders

Minimize collateral risk with a first lien position and typically a 50% loan-to-value ratio.
Smaller banks can work on larger projects while bigger banks can limit exposure to certain industries.
Assist more customers by leveraging lending capacity across more borrowers.
Alloy’s SBA Loan Experts will handle all the application paperwork, processing, and review required by the SBA.
Provides Community Reinvestment Act credit.

Who is eligible for the 504 Loan Program?

For-profit corporations, partnerships, and sole proprietorships.
Businesses whose net worth does not exceed $20 million.
Net profits must average less than $6.5 million during the previous two years.

What is eligible for the 504 Loan Program in Dayton, OH?

Land acquisition and land improvements
Building acquisition
Ground up construction
Renovation, expansion, or modernization
Long-term machinery and equipment with a useful life of 10 years or more.
“Soft” costs for appraisals, general surveying, architectural work, and installation.

Applicants involved in the following are not eligible:

Speculative lending or investments.
Non-profit institutions.
Rental property held primarily for sale or investment.
Businesses appealing to sexual nature or prurient interests.

About Dayton, OH

Dayton, Ohio, is a city that holds a special place in aviation history as the birthplace of flight. Today, it continues to soar with innovation and offers a diverse array of cultural attractions, including the National Museum of the United States Air Force. This welcoming city on the banks of the Great Miami River is known for its friendly atmosphere and a growing arts and food scene.

Why Choose Alloy Development Co.?

If you live in Dayton, OH and are interested in the SBA 504 program, Alloy is here to help. Alloy Development Co. has established itself as a leading force in the regional economic development landscape. As the leading CDC in the states of Ohio and Kentucky, our experience and impact speak for themselves. With a dedicated team of professionals, we are here to help your small business access capital to facilitate growth.

Whether you are curious about how an SBA 504 Loan can help your business or want to begin obtaining funds, let us serve as your trusted advisor. Contact us today to learn more.

SBA 504 Loans FAQs

Answers to the most common questions

Can I refinance using the SBA 504 Refinance Program?

Yes, refinancing is an option available under the SBA 504 Loan Program. According to the guidelines provided by the Small Business Administration, eligible small businesses can use the proceeds of an SBA 504 loan to refinance their existing commercial mortgage debts in certain cases. This option can be incredibly beneficial for business owners looking to lower their interest rates or extend their repayment terms, thus easing their financial burden and enhancing cash flow.

What are some scenarios that would qualify for refinancing through the SBA 504 refinance program?

If you answer yes to any of the below questions, the SBA 504 refinance program may be a good solution to fit your needs:

Do you own an owner occupied commercial building and have a pending balloon payment?
Do you want to reduce your monthly payments and increase cash flow?
Do you need access to cash?
Do you have an existing commercial real estate loan but want to fund improvements or an expansion to your building?

What are the SBA 504 Refinance Eligibility Guidelines?

Almost any owner-occupied property will qualify: minimum 51% owner-occupied and meet all other SBA 504 eligibility guidelines at time of application
Existing loan must be at least 6 months old
Business must be at least 2 years old
At least 85% of existing loan must have been for SBA 504-eligible purposes
Loan may be subject to a federal agency guarantee (meaning existing SBA 504 or 7(a) loans may be eligible) but the original lender must be unwilling to adjust the terms
Other assets can be used as collateral to get to 90% LTV
Up to 20% of the appraised value can be used for cash out for other business expenses
Appraisal not due at application, but will be required for funding

SBA 504 Loan Toolkit

Our experienced staff is here to help you find the right solution to your needs and help you navigate what we have to offer

Call our loan experts today at 513-631-8292 to find the right solution for your needs

Ready to get started on your new real estate project? Download Applications

Additional Loan Products We Offer

Ohio Regional 166 Loan

This program assists growing businesses in acquiring machinery, equipment, and real estate through a partnership between business owners, conventional bank financing, and Alloy Commercial Capital.

Learn More >

SBA 504 Refinance Program

This program allows you to refinance debt that you previously incurred for commercial real estate and fixed-asset projects at below-market rates.

Learn More >

Talk to one of our loan experts today to find the right solution for your needs

Or give one of our expert loan officers a call at 513-631-8292 for more info.

“Alloy walked me through the SBA 504 loan process every step of the way, which I really needed since I had never purchased commercial real estate before. They also helped me out with a tricky leased land situation that helped pave the way for future commercial real estate purchases.”

Steve Dorgan

President, Wray Precision, SBA 504 Loan Borrower

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