Lender Q&A: How is the term on a 504 loan determined?
Question: How is the term of a 504 loan determined?
Answer by Jim Conroy, Senior Vice President
"The term of the 504 relates to the useful life of the fixed asset being purchased. Real estate is financed using a 20 year 504 loan and equipment is financed using a 10 year 504 loan. Other assets that can be included into a 10 year 504 loan include furniture and leasehold improvements."