For some lenders, SBA 504 is familiar. Others may know the program but have not used it regularly. In either case, a common misconception persists: SBA 504 transactions are complicated.
Successful 504 projects are usually built on early planning, clear communication and collaboration among the lender, borrower and WBD. Understanding the key milestones helps establish expectations and keep the transaction moving.
Lenders know their customers, markets and credit philosophies. WBD complements that expertise with SBA eligibility guidance, structuring insight and support from the earliest discussion through funding.
Step 1: Identify a Potential Opportunity
Many SBA 504 projects begin with a simple conversation. A borrower may be purchasing or constructing an owner-occupied facility, expanding operations, acquiring equipment, or considering an ownership transition. Questions may arise about equity, collateral, cash flow or long-term financing needs.
This is often the ideal time to involve your WBD loan officer.
The transaction does not need to be fully structured before reaching out. WBD can serve as a sounding board as the lender considers whether SBA 504 may support the financing package and the borrower’s goals. The earlier these conversations occur, the more opportunity there is to explore potential structures before terms are finalized.
WBD also sees projects across a broad range of industries. In FY2026, our approvals represented 101 distinct NAICS classifications across 15 major industry sectors. That experience can give lenders an additional perspective on SBA eligibility, possible structures, and considerations encountered in similar projects.
Step 2: Evaluate Structure and Eligibility
Engaging WBD early creates an opportunity to discuss possible structures and determine how SBA 504 may fit within the overall financing plan. During this stage, WBD can serve as a resource as lenders consider:
- Project eligibility
- Occupancy requirements
- Equity injection expectations
- Eligible project costs
- Collateral considerations
- Special-purpose property requirements
- Affiliate and ownership structures
- Other potential SBA policy considerations
A brief conversation upfront can help the lender and borrower explore options to preserve borrower liquidity, manage leverage, and create a structure that supports the project’s goals. Our goal is to complement the lender with SBA expertise and help identify an effective way to structure and navigate the 504 portion of the transaction.
A joint borrower-lender-WBD meeting is highly encouraged at this step. It allows the parties to discuss the borrower’s goals, review the proposed structure, establish realistic timelines, clarify responsibilities, and begin with a common understanding of expectations.
Our team understands the time, effort and trust required to develop and maintain commercial banking relationships. Throughout the 504 process, we strive to be responsive, collaborative and professional throughout the process while reinforcing the lender’s role as the borrower’s primary financial partner.
Step 3: Complete Application and Due Diligence
Once the borrower decides to move forward, the focus shifts to gathering documentation and completing the required due diligence.
WBD can coordinate the 504 requirements while the lender remains focused on the customer relationship and its own credit process. Depending on the transaction, our team can assist with:
- SBA eligibility analysis
- Documentation requirements
- Environmental review coordination
- Project cost verification
- Financial analysis
- SBA application preparation
- Communication among the parties
The objective is to make the SBA portion of the transaction easier to navigate, anticipate potential requirements, and maintain clear communication as the project progresses toward approval.
For lenders newer to 504, WBD can help the team understand what to expect at each stage. In FY2026, WBD partnered with 50 lenders completing their first SBA 504 loan with us. Whether an institution is new to the program or has extensive 504 experience, our team is available to assist in structuring discussions, SBA requirements and transaction support.
Step 4: Approval and Authorization
Once underwriting is complete, WBD works through its approval process and obtains the necessary SBA authorization.
Questions may arise related to financial performance, project costs, eligibility, environmental requirements, or ownership structure. WBD works collaboratively with the lender and borrower to address those questions, share relevant SBA guidance, and maintain momentum.
Approval timelines can often be streamlined by setting expectations early and keeping all parties engaged and responsive throughout the process.
Closing and Funding
The final phase includes loan closing, interim financing, and ultimately SBA debenture funding.
When expectations have been established upfront, documentation has been gathered proactively, and communication has remained consistent, closing becomes a more predictable final step.
More than a Loan Program
SBA 504 is often viewed as a financing product, but much of its value begins before an application is submitted.
The best projects typically begin when lenders bring WBD into the conversation early. The lender remains at the center of the customer relationship, while WBD contributes SBA expertise, structuring perspective, and support throughout the transaction.
We recognize the effort required to earn and maintain commercial banking relationships. Our objective is not only to help navigate the SBA process, but also to deliver a positive experience that reflects well on our lending partners and strengthens their relationships with their customers.
Whether you are evaluating your first SBA 504 opportunity or your 50th, WBD’s loan officer team is available to help identify solutions, explore financing structures, and move good projects forward.
