The SBA 504 is for all owner-occupied businesses. The proceeds can be used for fixed-asset acquisitions, construction, and refinancing debt.

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Program Details:

Loan Amount: $300,000 to $12,000,000

Rates: Start in the mid 3's for the SBA portion (40%) + the Bank's rate (50%)

Terms: Bank term 10-year (1st)/ SBA portion 20 to 25-year term

Loan to Value: 75% to 90%

Prepayment: Declining prepayment penalty

Recourse or Non-Recourse: Recourse

 

Program Benefits :

• The SBA 504 program offers low down payments. With a down payment of 10%, businesses can conserve their working capital for the business needs.

• The SBA 504 program offers a low fixed rate on the 504 portion of the loan. With a low fixed rate, business owners don't have to worry about the prime rate fluctuating on the 504 portion during the term of their loan.

• The SBA 504 program offers longer terms, which lowers a business's monthly payment. In turn, this frees up a business's cash flow that can be used in other aspects of the business.

• The SBA 504 program has no balloon.