SBA 504 Daycare, Child Care, Preschool, Private School & Montessori School Financing*
The SBA 504 loan is an excellent loan for the construction, expansion, purchase or refinance of a:
- day care center
- child care center
- pre-school
- private school or a
- montessori school
Primary Benefits for Schools, DayCare & Childcare Centers
1. The 504 program provides commercial financing up to $10 million+ that is available right now in spite of what is going on with banks and lenders.
2. It enables you to borrow up to 90% of the project costs for your school or day care/child care facility. In other words, it allows you to put down 10% (or have 10% equity) and finance most of the rest of the costs - including closing costs and "soft" costs like appraisals, engineering fees, surveys, etc.
3. If you create a Green School or build some energy efficiency into your facility you can qualify for more money from the SBA. For instance, if you already own a few day care centers or pre-schools and you are out of SBA eligibility you can borrow more if you "go green," since the SBA now allows green building financing upwards of $12+ million.
By becoming an environmentally friendly institution you would also:
- secure excellent long term financing
- cut your energy costs significantly
- realize some excellent tax benefits
- save money that can be reinvested in the school
- create a healthier environment for your students and teachers
- create a built-in "lab" for teaching your students about alternative energy sources...
- and as a " green school" you might also be able to get some good PR out of it.
4. SBA 504 financing is amortized long term commercial financing with no re-qualifying later. In other words, there are no balloons or "calls" and no need to refinance later.
5. The SBA guaranteed second mortgage is a 20 year fixed at a below market rate.
6. The rates and fees are very low and the SBA has waived the majority of their fees for at least the rest of 2009 and likely all of 2010.
* The program is not available for schools that are non-profit, but it is available for a school that is a "for profit" subsidiary of a non-profit.
Click here for a comprehensive report about Green Schools from the US Green Building Council. It provides great detail about all of the benefits of green school construction.
More SBA 504 Loan info: SBA 504
Please contact us at 1-800-414-5285 to find out how our expertise with the SBA 504 can help your business.
