SBA 504 Loans

Borrower Benefits

1. Low down payment of only 10%
2. Long repayment terms - reducing monthly payments
3. Frees up cash flow to expand your business
4. 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 7a for refinance transactions

Standard Loan Structure

50% financing - First mortgage (up to $3 million)

40% financing - SBA 504 second mortgage (SBAKertified Development Corporation provides up to $2 million)

10% minimum down payment by the borrower (15 % in the case of special use properties)

Terms

First mortgage

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