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SBA 504 loans are a powerful financing tool for Birmingham businesses looking to acquire major fixed assets and fuel their growth.
As Alabama's premier Certified Development Company (CDC), Alabama Small Business Capital (ASBC) has helped countless businesses secure these loans.
Let's examine which Birmingham industries are benefiting most from this financing option and why.
The SBA 504 loan program offers several distinct advantages that make it particularly appealing to growing businesses, including:
These loans work through a straightforward structure: typically, a conventional lender (bank or credit union) provides 50% of the financing, ASBC provides 40% through an SBA-guaranteed debenture, and the borrower contributes just 10%.
This structure makes large purchases much more accessible for small businesses.
Based on economic data and industry trends in the Birmingham area, which generates more than 30% of Alabama's annual GDP, several industries stand out as the primary beneficiaries of SBA 504 financing:
Birmingham has established itself as a center of medical excellence in the Southeast, with the University of Alabama at Birmingham (UAB) and its hospital serving as the area's largest employer with 28,000 jobs and 1,207 hospital beds. The healthcare sector accounts for 8.8% of local area employment, significantly higher than the national average of 6.2%.
Healthcare facilities frequently require substantial investment in medical facilities and specialized equipment, making them ideal candidates for SBA 504 financing. Birmingham's healthcare industry benefits from the 504 program's ability to finance:
The city's position as a regional medical hub, with specialized research at Southern Research Institute and multiple hospital systems, creates ongoing demand for fixed asset financing.
Birmingham's construction industry has experienced significant growth, particularly in healthcare construction. Five of the nation's 20 largest general contractors ranked by dollar volume for completed healthcare projects are based in the Birmingham metro area, including Brasfield & Gorrie (ranked #1 nationally) and Robins & Morton (#2).
The Greater Birmingham Region boasts over 1,300 advanced materials and manufacturing companies, creating a robust supply chain across industries. Construction businesses frequently need financing for:
Recent major projects include Medical West's new $200+ million hospital complex and multiple UAB expansion projects, demonstrating the sector's growth potential.
Birmingham's economy has diversified significantly from its historical steel industry roots, with professional and business services becoming a major employment sector. The area serves as a regional hub for:
Professional service firms use SBA 504 loans for:
Alabama's automotive industry has grown substantially, with major manufacturers like Mercedes-Benz, Honda, and Toyota within 75 miles of Birmingham. The Jefferson County Economic & Industrial Development Authority has announced plans for a 1,100-acre industrial park expected to create over 4,700 jobs, primarily targeting automotive suppliers.
Manufacturing companies benefit from SBA 504 loans for:
While Huntsville is known as "Rocket City," Birmingham has developed its own technology sector, supported by UAB's research activities and the city's role as a regional business center. The area has seen growth in:
Several other sectors in Birmingham demonstrate significant benefit from SBA 504 loans:
Retail Trade: Birmingham serves as a regional retail hub, with major shopping centers like the Riverchase Galleria. Retailers use 504 loans for purchasing retail locations and specialized equipment.
Transportation and Logistics: Given Birmingham's central Southeast location and connectivity across road, rail, air, and water, logistics companies frequently need financing for warehouses and transportation equipment.
Accommodation and Food Services: The hospitality sector, including restaurants and hotels, benefits from the program's ability to finance real estate acquisitions and equipment purchases.
To qualify for an SBA 504 loan, your business must:
These funds can be used for:
As of June 2025, interest rates for SBA 504 loans are:
Since 1989, ASBC has been dedicated to helping Alabama small businesses access the capital they need to grow. As a premier provider of SBA 504 loans in the region, we've helped secure more than $14 billion in total 504 projects approved and contributed to the creation of over 76,000 jobs.
What sets us apart is our commitment to:
Certainty: Reliable support and expert guidance backed by over three decades of experience
Speed: Quick, efficient processes ensuring you receive necessary financing without delays
Service: Support from application through the life of your loan
Whether you're in healthcare, construction, professional services, manufacturing, or another industry that could benefit from fixed-asset financing, ASBC can help you secure the SBA 504 loan you need. Our streamlined process takes you from application to closing with certainty, speed, and exceptional service.
Birmingham's economy continues to diversify and grow, ranking 4th nationally for metro job growth in 2023 and recently placing 8th overall in the "2024 Top States for Doing Business" report. With major investments like Coca-Cola's new $330 million headquarters and continued healthcare expansion, the opportunities for business growth are substantial.
Contact us today to schedule a no-risk consultation with one of our loan officers. With over 35 years of expertise, ASBC is your trusted partner for small business financing in Alabama's most dynamic business center.
For more information about SBA 504 loans in Birmingham and throughout Alabama, contact Alabama Small Business Capital at (334) 209-2600 or info@asbc504.com.
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