SBA 504 Loan Program

Borrower Benefits

• Low down payment of only 10%
• Long repayment terms - reducing monthly payments
• Frees up cash flow to expand your business
• Many rate options including long term fixed rates 

Use of Proceeds

Purchase, construction or renovation of owner-occupied commercial real estate

Refinancing of existing debt is not permitted with a 504.  Please refer to SBA 7(a) for refinance transactions

Standard Loan Structure

50% financing - First mortgage (up to 4.5 million)
40% financing - SBA 504 second mortgage (SBA Certified Development Corporation provides up to $2 million)
10% minimum down payment by the borrower

Terms

First Mortgage
* 25 years, fully amortized
* Fixed, floating and adjustable rates available
* Competitive fee structure
* Prepayment penalty applies & is set based on various factors

Second Mortgage
* 20 years, fully amortized
* Fixed rate is determined at SBA-guaranteed 504 debenture sale
* Fees set by CDC
* Prepayment penalty for initial 10 years, none after the end of year 10

Pre-Approval

Pre-Approval service available within 24-48 hours with no charge or obligation by providing limited information.