SBA 504 Loan Program
The SBA 504 Loan program helps businesses fund projects for fixed assets, including real estate or equipment. The 504 program is designed to provide long term, fixed rate financing for the acquisition or renovation of capital assets, including land, buildings and capital equipment.
We can provide financing for some start-up operations, but only those with a successful track record in business. Loan eligibilty is based on historic or projected cash flow, so collateral is not always an issue.
SBA 504 Loan Program Highlights:
SBA 504 Property Types Considered:
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Owner-Occupied Office Bldgs. |
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Hotel / Motel |
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Medical/Dental/Veterinary Offices |
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Self-Storage |
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Owner-Occupied Retail Bldgs. |
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Restaurants |
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Assisted Living Facilities |
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Car Wash |
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Gas Stations & C-Stores |
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Office Condo |
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Child & Adult Day Care Centers |
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Special Purpose |
Guidelines:
Use of Proceeds
Real estate - purchase and acquisition, construction or renovation of owner-occupied commercial real estate
Refinance - including a limited amount of debt refinancing (if undergoing an expansion)
Standard Loan Structure
50% financing - First mortgage (up to $6.5 million)
40% financing - SBA 504 second mortgage (SBA Certified Development Corporation provides up to $5 million)
10% minimum equity 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 year fixed term
* 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
Loan Proposal Issued In 24-48 Hours!
*** Commercial Real Estate Loans not available in AZ, CA, HI, NV, NY, NJ, ND, SD & WI
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