Another of the Small Business Administration’s popular loan programs is called the SBA 504 loan. In a nutshell, the SBA 504 loan program is a long-term loan set with a fixed rate at 10-percent down. Know that it has the government-backed guarantee you desire and the terms and rates your small business needs to keep from a crippling small business loan without this vitally important protection. At SBALoanOnline, we provide SBA 504 loan services in Adams County and have developed a quick and easy process so you don’t have to worry about how to navigate the government’s sometimes tricky and confusing process.
SBA 504 Loan Company Near Me In Adams County Washington
Keep in mind, one of the primary reasons for owning your own business is to control your own business and personal fate, so don’t get into a loan or financial situation where you’re tied to rates and terms that tie you down. Let the highly skilled and trained experts at SBALoanOnline help you understand the SBA 504 program and how it can help you expand your capital access in the most financially friendly terms and rates. We’ll work tirelessly for you the moment you reach out to us for assistance. Each of our team members has tons of experience with SBA loan programs.
Get A SBA 504 Loan Today – (424) 343-1099
So if you’d like more information about the SBA 504 loan program and would like to obtain one today, call the nationwide experts at SBALoanOnline. One of our friendly and knowledgeable associates in Adams County WA is standing by right now to answer any question and get your application ready to roll, so to get a SBA loan now, call us at (424) 343-1099.
Qualifying For a SBA 504 Loan
The SBA 504 Loan is a program that also integrates a community development corporation in Adams County. The loan is preferably ideal for a small business that is interested in building or buying their owner-occupied industrial property.
The program works by bringing 2 lenders together to fund the purchase of business property. Normally, these 2 lenders are the CDC and a traditional lender or bank.
These plans work whereby the bank loans the borrower as much as 50 percent, CDC loans up to 40 percent while the debtor chips in the 10 percent normally as a cash deposit.
Loan Requirements for a SBA 504 Loan
There are two primary requirements that your business in Adams County WA must fulfill in order to qualify for a SBA 504 loan. These include having a credit score of 680 plus and a capability to make a 10 percent deposit for the project.
Besides the two, you will need to not have the needed financing form other source or be involved in the real estate rental financial investment.
Your organization in Adams County WA will have to have a considerable net worth of less than $15 million, have the capability to make the loan payment on time from the expected operating cash flow from the business as well as occupy 51 percent of the building.
SBA 504 loans are therefore ideal for any business that has an interest in the purchase of industrial property and can guarantee 51 percent tenancy of the space while renting the remaining 49 percent.
Loan Terms and Interest Rates
The two various types of loan— from the bank and the CDC– that make up the SBA 504 Loan normally have different terms, limits, rates, and fees.
The rates combined comprise the overall loan rate on your CDC/SBA 504 Loan.
Generally, your company will pay a rate of interest of between 4 and 6 percent on the whole loan with a repayment length of 25 years.
The SBA sets a limit on the terms, costs and rates of interest that is given by the CDC which covers 40 percent of the whole project expense.
With a 10-year CDC loan, the fixed interest rate will be about 4.67 percent with a 20-year one having a fixed interest of 4.95 percent.
Conventional SBA 504 Loan Lenders
While the SBA sets the limit on the CDC loans, it does not do the same for the conventional lenders such as banks or other banks which leaves space for negotiations for the loans.
However, the rate of interest are normally between 5 and 9.5 percent with a reset point. The loan amount for a SBA 504 loan is typically around $14 million.
Considering that borrowers can take on multiple 504 loans for multiple reasons, the loan amount can increase to $20 million.
As a business, if you are not thinking about getting financing from a CDC, your best alternative is the SBA 7a loan.
Obtaining a SBA 504 Loan
The SBA 504 loan application resembles that of the SBA 7a loan in terms of the amount of time and paperwork needed to get the funding.
In addition, your company will have to give extra documents on the commercial property that is being funded.
In any case, consider a suitable amount for your business and whether you can satisfy your lenders’ needs.