SBA 504 LOANS

• Loan amounts up to $5,500,000

• Have a tangible net worth of less than $15,000,000

• Have an average net income of less than $5,000,000 after federal income taxes for the two years preceding application

• Operate as a for-profit company in the U.S. or it's possessions

• 10, 20, 25 year terms available

• Competitive interest rates

• Need a feasible business plan

SBA 504 loan

• Promote business growth and job creation

• Improvement of business appeal

• Purchase, construction, improvement or modernization of:

  • Land or streets

  • Utilities, parking lots, landscaping

  • Existing facilities

  • Existing buildings or land

  • New facilities

  • Long-term machinery and equipment

Common uses for our SBA 504 loans

SBA 504 Loans

SBA 504 loans are like a partnership between a small business, a local lender, and the government, all working together to help the business grow. Imagine you have a small business, and you want to buy real estate, build a new facility, or purchase heavy equipment. These things can be quite expensive. With an SBA 504 loan, you don’t have to bear the entire cost yourself. The loan works in two parts: First, you contribute a portion (usually 10%) of the project cost from your own funds. Second, a local lender, like a bank, provides 50% of the project cost in the form of a loan. The remaining 40% of the project cost is funded by a Certified Development Company (CDC), a non-profit organization set up to promote local economic development and backed by an SBA-guaranteed debenture bond. The best part is, your contribution and the bank loan have fixed, reasonable interest rates, making it easier for you to plan your finances. This arrangement helps small businesses because it spreads out the financial responsibility and makes it more affordable to undertake significant projects. It’s like a three-way support system, where you, the local lender, and the government all pitch in to boost your business’s growth and success.