Own the Business, Own the Building: Dream Big with the SBA 504 Program
Small Business Week is here, and SomerCor is ready to help more local entrepreneurs access capital to grow their businesses. SomerCor is a non-profit U.S. Small Business Administration (SBA) Certified Development Company (CDC) and a leading lender of SBA 504 loans in the Chicagoland area. Part of the organization’s mission is to advance economic development across our service area with the SBA 504 Program and other initiatives like the VetLoan Advantage Program and the SomerCor Down Payment Assistance Program.
The SBA 504 Program
The 504 program is designed to help small to mid-sized businesses access capital that is essential for their growth. These loans foster business expansion by financing the purchase, improvement, or refinance of owner-occupied commercial real estate and fixed equipment for a broad range of entrepreneurs, business sizes, and industries. The borrower friendly terms include:
- Low down payment – up to 90% financing for established businesses;
- Below-market interest rates – lower and more affordable monthly mortgage payments;
- Long-term fixed rates – 10, 20 or 25 years.
Additionally, manufacturers (primary NAICS Code in sectors 31, 32, and 33) have a unique opportunity to access capital for growth through the SBA 504 program. Along with lower interest rates, the SBA Made in America Manufacturing Initiative increased the maximum debenture (loan) amount to $5.5 million, and instituted fee waivers for SBA 504 loans approved between October 1, 2025, and September 30, 2026.
VetLoan Advantage Program
One of SomerCor’s economic development initiatives is the VetLoan Advantage program, in partnership with the National Association of Certified Development Companies (NADCO), to support access to capital for our nation’s veterans.
In addition to the SBA 504 program’s advantageous terms, SomerCor’s VetLoan Advantage program offers cost coverage of the Third-Party Lender (TPL) fee, up to $3,000. Eligibility requirements include:
- Must be a veteran or spouse of an active military member owning 51% or more the applicant business;
- Must be a first time SBA 504 borrower;
- SBA 504 loan is less than $500,000.
SomerCor’s first VetLoan Advantage recipient, Krimson Security and Fingerprinting, received a check for $1,275 to cover TPL fees. The SBA 504 loan enabled the business to purchase a 7,100-square-foot facility in North Aurora, customizing it to fit their needs and become their new company headquarters.
SomerCor’s Down Payment Assistance Program (DPAP)
In April 2026, SomerCor launched its Down Payment Assistance Program (DPAP) in partnership with the Cook County Small Business Source. This new initiative helps eligible businesses in Cook County purchase their first owner-occupied real estate by providing a grant equal to 5% of eligible project costs, up to $25,000. To be eligible, businesses must be first-time SBA 504 borrowers and:
- Make their first purchase of owner-occupied commercial real estate for an operating business in Cook County;
- Been in operation for at least two years and is in good standing with the State of Illinois;
- Have annual revenue between $200,000 and $5,000,000;
- Total project size cannot exceed $1,000,000;
- Are subject to all SBA, SomerCor, and third-party lender eligibility and underwriting requirements.
Working to spark growth and advance economic development, SomerCor delivers capital and resources to help businesses thrive. Contact SomerCor at www.somercor.com to learn how the SBA 504 loan, VetLoan Advantage and Down Payment Assistance programs can support the growth of your business.
• Michael Piazza is Senior Vice President & Loan Officer, SomerCor.