SBA 504 Loan for Purchase - Acquisition of Commercial Property

The 504 Loan Program for a Building Purchase or Purchase Renovation

What you need to know:

• Many 504 loan applications can be approved with 10% down. (This makes the program worth considering for any business owner trying to conserve cash).
  
  
• The 504 further allows you to conserve cash by allowing you to finance most closing costs and "soft costs."
  
  
• Due to it's structure, the 504 has much more predictable payments than conventional commercial loans.
  
  
• On a $1,000,000 purchase you will save at least $100,000 in out of pocket costs vs. traditional commercial financing. (And the higher the loan amount, the greater the savings).
  
  

Advantages of the SBA 504

1. It's commercial financing that is actually available despite what is going on in the credit markets.

2. It allows for 90% loan to cost commercial real estate financing.

3. It is long term fully amortized financing with no balloons, calls, re-qualifying or refinancing later.

4. It allows a 10% down payment/equity injection at a time when most commercial lenders want 30% down.

5. The rates and fees are low.

6. You can finance manufacturing facilities or Green Building* projects up to $13,000,000+ with a 20% equity injection and $10,000,000+ with approx 10% equity.

More SBA 504 Loan info: 504 Loans

Summary of SBA 504 Renewable Energy Benefits

*Green Building means a 10% reduction in energy consumption.

Please contact us at 1-800-414-5285 to find out how our expertise with the SBA 504 can help your business.