SBA 504 Program
Purchase and Refinance:
The SBA 504 loan program provides small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization, such as land and buildings.
The SBA 504 loan program allows a small business to obtain a loan at a reasonable, 20 year fixed rate of interest with as little as 10% down.
A lender provides 50% of the financing in a first lien position, the 504 Loan provides up to 40% of the financing in a second lien position, and the business contributes as little as 10%.
The business must be the primary occupant (51% for an existing building and 60% for a newly constructed building) of the project real estate.
504 PROGRAM HIGHLIGHTS
Up to 90% commercial financing.
Below market, true fixed interest rates.
Amortization terms up to 20 years
No balloon payments
Eligible Property Types:
Industrial:
Heavy and Light Manufacturing, Warehouse
Office:
Professional, Condominium, Medical, Dental and Veterinarian.
Retail:
General
Special Purpose:
Assisted Living Facilities / Adult Care, Day Care Facilities, Restaurants, Funeral Homes and
Hotels/Motels.
Use of Proceeds:
Purchasing land and improvements, including existing buildings, grading, street improvements,
utilities, parking lots and landscaping;
Construction of new facilities or modernizing, renovating or converting existing facilities;
Purchasing long-term machinery and equipment.
The 504 Program cannot be used for working capital or inventory, consolidating or repaying debt.