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 Benton 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 Benton 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 Benton 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 incorporates a neighborhood advancement corporation in Benton County. The loan is preferably suitable for a small company that is interested in building or purchasing their owner-occupied business property.
The program works by bringing two lenders together to fund the purchase of business property. Typically, these 2 lenders are the CDC and a conventional lender or bank.
These arrangements work where the bank loans the debtor up to 50 percent, CDC loans as much as 40 percent while the borrower chips in the 10 percent generally as a cash down payment.
Loan Requirements for a SBA 504 Loan
There are two main requirements that your organization in Benton County WA must fulfill in order to get approved for a SBA 504 loan. These consist of having a credit score of 680 plus and an ability to make a 10 percent deposit for the project.
Besides the two, you will need to not have the required financing form any other source or be associated with the property rental investment.
Your organization in Benton County WA will need to have a considerable net worth of less than $15 million, have the capability to make the loan payment on time from the anticipated operating capital from business as well as inhabit 51 percent of the building.
SBA 504 loans are therefore perfect for any company that is interested in the purchase of commercial property and can guarantee 51 percent tenancy of the space while renting out the remaining 49 percent.
Loan Terms and Interest Rates
The two various kinds of loan— from the bank and the CDC– that make up the SBA 504 Loan generally have various terms, limits, rates, and fees.
The rates combined make up the overall loan rate on your CDC/SBA 504 Loan.
Usually, your business will pay an interest rate of in between 4 and 6 percent on the whole loan with a repayment length of 25 years.
The SBA sets a limit on the terms, fees and rates of interest that is given by the CDC which covers 40 percent of the whole project cost.
With a 10-year CDC loan, the fixed rate of interest 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 standard lenders such as banks or other financial institutions which leaves space for negotiations for the loans.
Nevertheless, the interest rates are usually in between 5 and 9.5 percent with a reset point. The loan amount for a SBA 504 loan is typically around $14 million.
Because borrowers can take on multiple 504 loans for several projects, the loan amount can increase to $20 million.
As an organization, if you are not interested in getting funding from a CDC, your finest option is the SBA 7a loan.
Getting a SBA 504 Loan
The SBA 504 loan application resembles that of the SBA 7a loan in regards to the amount of time and documentation needed to get the financing.
Additionally, your company will need to give extra documentation on the property that is being funded.
Either way, consider a proper amount for your business and whether you can fulfill your lenders’ needs.