Bay Area Development Company

09/01/2026

"How are SBA 504 projects structured?"
SBA 504 loans are comprised of three funding sources.
1. A conventional loan from a bank, credit union or other commercial finance lender usually provides 50% of the overall project financing in a first lien position.
2. The SBA 504 loan typically provides up to 40% of the project financing in a second lien position.
3. The buyer provides a minimum 10% down payment. This low down is one of the factors that makes 504 funding attractive for small business owners.
504 loans deliver up to $5 million for most projects, and up to $5.5 million for manufacturing companies and for projects that produce renewable energy. Projects from $300,000 to $25 million or more are viable SBA 504 financing candidates.
SBA 504 loans are take-out or permanent financing. The lender providing the 1st mortgage loan also provides interim financing of the SBA 504 portion of the loan including when projects include remodeling or construction. For a building purchase without construction, a short-term bridge loan from the 1st mortgage lender ensures a timely close of escrow. The SBA 504 loan provides funds to pay off the interim or construction financing.

08/28/2026

08/26/2026

Sebastopol Hardware Center has been a fixture in the community since opening its doors in 1965 and has built such a strong reputation for delivering friendly customer service that locals refer to it as Smile Hardware.

Doug Bishop is the store’s current President and runs it with Vice Presidents Dan Allingham and Karen Jones. Over the years, they have brought on new product lines and made changes that benefit the store and its customers. In 2010 they made a big move – literally – when they expanded to adjacent property in order to increase their offerings. The location was leased for several years, then purchased it with an SBA 504 loan so that Bishop and his partners could ensure it would remain part of the store for the long term.

Doug says his biggest point of pride at the helm of Sebastopol Hardware is serving the community. Onsite, the store’s 67 employees appreciate that customers choose to come into the store in an age when some people believe online shopping is easier. While the human touch seems to be an afterthought at many businesses, Sebastopol Hardware is thriving by making it their priority.

Thanks to Sebastopol Hardware for allowing us to assist you, and thanks to Exchange Bank for being our lending partner on this project.

08/24/2026

Every time you choose to shop local, you're investing in the people and places that make your community special. Let's celebrate the small business owners who show up, take risks, and pour their passion into making our Main Streets vibrant and welcoming!

08/19/2026

Our new blog highlights just one of the many industries represented by our clients.
If growth is on your roadmap let’s talk about how SBA 504 financing can help you reach your destination!
https://www.baydevco.com/sba-504-in-action-on-main-street-transportation-auto-related/

08/17/2026

It takes courage to create a business idea and put it out in the world. Keeping it going means having the passion to stay in the game.
Here's to all of you who keep showing up for your dream every day.

08/13/2026

According to a recent count, there are more than 36 million small businesses in the country today, making up 99% of all businesses in the United States.

SBA 504 loans are designed for successful, growing, for-profit companies that have a proven ability to meet loan repayment terms. Most businesses that meet these criteria, operate in the United States, and are privately held are eligible for SBA 504 financing.

The SBA also relies on industry-specific size standards defined by NAICS codes or net income and tangible net worth to further define small business size. Contact our team to find out if your business qualifies and learn how 504 funding can help you achieve your growth goals. https://www.baydevco.com/contact-us/

08/11/2026

Small businesses keep main street moving…quite literally in some cases. Our latest blog shares how SBA 504 funding has helped clients in the transportation industry get on the road to greater growth and success.

The freedom to gro with SBA financing; SBA programs can make a meaningful difference with flexible funding solutions created specifically for small businesses.