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 Columbia 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 Columbia 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 Columbia 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 advancement corporation in Columbia County. The loan is ideally appropriate for a small business that is interested in building or purchasing their owner-occupied business real estate.
The program works by bringing two lenders together to fund the purchase of commercial real estate. Normally, these 2 lenders are the CDC and a standard lender or bank.
These plans work where the bank loans the customer up to 50 percent, CDC loans up to 40 percent while the customer chips in the 10 percent usually as a cash deposit.
Loan Requirements for a SBA 504 Loan
There are two main requirements that your company in Columbia County WA should fulfill in order to receive 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 have to not have the required funding form any other source or be involved in the property rental investment.
Your business in Columbia County WA will need to have a considerable net worth of less than $15 million, have the ability to make the loan payment on time from the expected operating cash flow from business as well as occupy 51 percent of the building.
SBA 504 loans are therefore ideal for any organization that is interested in the purchase of industrial real estate and can ensure 51 percent tenancy of the space while leasing the remaining 49 percent.
Loan Terms and Interest Rates
The two different kinds of loan— from the bank and the CDC– that comprise the SBA 504 Loan generally have various terms, limitations, 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 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.
Traditional 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 financial institutions which leaves space for negotiations for the loans.
However, the rate of interest are typically 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 numerous 504 loans for numerous projects, the loan amount can increase to $20 million.
As a company, if you are not interested in getting financing 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 funding.
In addition, your company will have to give additional paperwork on the property that is being funded.
In any case, consider an appropriate amount for your business and whether you can fulfill your lenders’ needs.