01Calculator
SBA 504 stack and blended cost
Enter a project and watch the three bands resolve into two payments and one number that matters — the blended debt constant. Then look at what the same building would cost with a single conventional loan.
- Three-band stack
- Two payments and one total
- Blended debt constant
- Side-by-side against a conventional loan
Illustrative only. Bollard is a fictional business built as a website demonstration — the figures below are worked examples, not an offer, a quote or a rate sheet.
The stack
$2,660,000
total project cost
- You bring at closing
- $266,000
- CDC debenture, fees financed
- $1,090,600
- Bank first mortgage
- $1,330,000
Total monthly debt service
$16,240
$9,180 bank + $7,060 debenture
Blended debt constant
8.14%
annual debt service ÷ total debt
Weighted note rate
6.42%
by balance, across both loans
Total leverage on price
101%
both loans ÷ purchase price
Debt outstanding
Both loans, twenty-five years
Bank first in band one, debenture in band two
Side by side
504 stack against one conventional loan
| Measure | SBA 504 | Conventional | Difference |
|---|
The conventional column assumes one loan at the LTV and rate set in the panel, amortising over the same term as the bank first.
Every input on this page lives in the address bar, so the link below reproduces exactly what you are looking at.
Assumptions and limits
What this model does and does not do
The bank first mortgage is fixed at fifty percent of total project cost, which is the conventional 504 split. Your equity comes off the top and the debenture covers the remainder — so a fifteen or twenty percent equity requirement shrinks the debenture, it does not enlarge the bank loan.
CDC fees are modelled as a percentage financed into the debenture rather than paid at closing, which is how they are normally handled. They are real debt and they accrue interest for the full term.
Both loans are treated as fully amortising at a fixed rate. A real bank first commonly matures before it amortises — model that balloon on the amortisation calculator.
Nothing here includes closing costs outside the project, taxes, insurance, or the timing difference between closing and the debenture funding. Every rate is one you typed, not one anyone has quoted.
The other five
Next bay
Model it, then let someone check it
Calculators answer the arithmetic. What they cannot tell you is whether a lender will believe your net operating income, or which programme your equity actually supports.
Or call the desk
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A demonstration number in the range reserved for fiction. It does not ring anywhere.