Can I finance equipment with the SBA 504 industrial loan?

Yes. SBA 504 can finance both real estate and long-life equipment (10+ year useful life) in a single loan. This is particularly valuable for manufacturers who need CNC machines, presses, or other capital equipment installed in the facility.

What are the SBA manufacturer fee waivers?

Businesses with NAICS codes 31-33 (manufacturing) receive reduced or waived SBA guarantee fees on 504 loans. This can save $5,000-$50,000+ depending on loan size. The waiver applies to the upfront guarantee fee, not the ongoing servicing fee.

How does SBA 504 compare to a conventional industrial loan?

SBA 504 offers lower rates (typically 50-150 bps below conventional), higher leverage (90% vs 65-75%), and 25-year fixed terms. The tradeoff is more paperwork, longer closing timelines, and occupancy requirements. For a 65% LTV deal, conventional may close faster.

Published: March 31, 2026·Last updated: May 16, 2026·By Ed Freeman, Capital Advisor — PeerSense

What is the best financing for industrial at 65% LTV?

Owner-user industrial properties at 65% LTV qualify for SBA 504 financing with 25-year fixed rates typically in the 6.5%–7.5% range, or conventional commercial mortgages at competitive rates. SBA 504 allows up to 90% financing for eligible manufacturers, with fee waivers for NAICS 31-33 codes reducing total borrowing cost significantly.

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder

Prime: 6.75% 10-Yr Treasury: 4.25% Est. SBA 504 Range: 6.5% – 7.5% (SBA 504 fixed)as of Mar 19, 2026

Industrial

65% LTV Industrial Owner-User Financing

Owner-user industrial properties at 65% LTV qualify for SBA 504 or conventional financing. SBA 504 fixed rates typically 6.5%–7.5%, 25-year amortization, and fee waivers for manufacturers (NAICS 31-33).

Minimum 30-35% equity required. Business owners purchasing or refinancing industrial space they occupy.

Discuss Your Industrial Deal Call (317) 452-6990

KEY TERMS

Deal Parameters at a Glance

LTV Target

65%

Est. Rate Range

6.5% – 7.5% (SBA 504 fixed)

Term

10-25 years fixed

Recourse

Full recourse (SBA) / Recourse (Conventional)

DSCR

1.20x minimum

Closing Speed

45-60 days (conventional) / 60-90 days (SBA)

Min Loan Size

$500K

Loan Products

SBA 504, Conventional

FIT ASSESSMENT

When Is This the Right Fit?

This financing is ideal when you occupy (or will occupy) at least 51% of the industrial space and want to build equity rather than lease. SBA 504 is the strongest option for borrowers who need high leverage (up to 90% LTV) at fixed rates. If you are a manufacturer with NAICS 31-33 classification, the SBA fee waiver program reduces origination fees by 50-100%, making this the lowest-cost industrial acquisition financing available. At 65% LTV, you may also qualify for competitive conventional rates, especially on properties under $2M where SBA paperwork overhead is less justified.

Want the full program overview, current rate sheet, and underwriting matrix? See the SBA Loans guide →

ADVANTAGES

Key Benefits

SBA 504 offers up to 90% financing with only 10% borrower equity

25-year fixed rate eliminates long-term interest rate risk

Manufacturer fee waivers (NAICS 31-33) save 0.5-1.5% on SBA fees

Below-market rates compared to conventional industrial loans

Build equity in your operating facility instead of paying rent

ALTERNATIVES

Strategic Alternatives

Warehouse Industrial Bridge Refinance

If you need bridge financing before stabilization or renovation

Learn more

SBA 7(a) to 504 Refinance

If you hold a variable-rate SBA 7(a) and want to convert to fixed

Learn more

Equipment Financing for Manufacturing

If you need to finance machinery and equipment alongside the property

Learn more

Frequently Asked Questions

SBA 504 requires 10% borrower equity for most industrial acquisitions. Special-purpose properties or new businesses may require 15-20%. At 65% LTV, you are well within conventional thresholds and may not need SBA leverage at all.

See Related Rates by Program

PeerSense covers the full commercial capital stack. Rates and structures across our money pages — updated weekly.

CMBS Conduit

5.60–7.10%

10-yr non-recourse fixed, $5M–$500M+, fully assumable

See current rates

Bridge Loans

9.00–14.00%

12–36 mo transitional, SOFR + 470-970 bps, 65-75% LTV

See current rates

DSCR Investor

5.95–8.50%

30-yr fixed rental, qualifies on property cash flow

See current rates

Equipment Financing

5.50–12.00%

Loan, lease, SBA 504, vendor, captive — Section 179 eligible

See current rates

Hotel Financing

5.85–11.75%

CMBS + SBA 504 + bridge + PIP across all flags

See current rates

Mezzanine Debt

11.00–18.00%

Subordinate to senior, $1M–$50M, capital stack fill

See current rates

Private Credit

7.80–18.00%

Non-bank flexibility, unitranche, recap, transitional

See current rates

Invoice Factoring + ABL

0.5–3.5% / 30d

B2B receivables, trucking / staffing / construction / govt

See current rates

No-Doc CRE

7.50–11.50%

Limited-doc commercial, asset-based underwriting

See current rates

Connect with PeerSense — Direct Capital Advisory

PeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With 500+ lender relationships and live market rate intelligence, we match your industrial deal with the right capital source — right now.

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No upfront retainer · Fee at closing only · Complimentary initial consultation

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated March 2026.

Disclaimer: The information on this page is provided for educational purposes only and does not constitute financial, legal, or investment advice. Rates, terms, and availability are subject to change based on market conditions, property characteristics, and borrower qualifications. The rate ranges cited reflect approximate market pricing as of March 2026 and may not reflect current conditions at the time of reading. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. All financing is provided by third-party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult with qualified financial and legal professionals before making any financing decisions.