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 Douglas 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 Specialist Near Me In Douglas 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 Douglas 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 Douglas County. The loan is preferably ideal for a small business that has an interest in building or buying their owner-occupied commercial property.
The program works by bringing 2 lenders together to fund the purchase of industrial real estate. Usually, 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 as much as 40 percent while the borrower chips in the 10 percent normally as a cash deposit.
Loan Requirements for a SBA 504 Loan
There are 2 main requirements that your company in Douglas County WA should fulfill in order to receive 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 needed financing form other source or be involved in the real estate rental financial investment.
Your organization in Douglas County WA will need to have a considerable net worth of less than $15 million, have the capability to make the loan repayment on time from the expected operating cash flow from the business in addition to inhabit 51 percent of the building.
SBA 504 loans are therefore perfect for any business that has an interest in the purchase of commercial real estate and can guarantee 51 percent tenancy of the area while leasing the remaining 49 percent.
Loan Terms and Interest Rates
The two different kinds of loan— from the bank and the CDC– that make up the SBA 504 Loan normally have various terms, limits, rates, and fees.
The rates integrated make up the total loan rate on your CDC/SBA 504 Loan.
Normally, your organization will pay a rate of interest of between 4 and 6 percent on the whole loan with a payment length of 25 years.
The SBA sets a limit on the terms, costs and rate 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 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 traditional lenders such as banks or other banks which leaves room for settlements for the loans.
However, the rates 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.
Since borrowers can take on several 504 loans for multiple reasons, the loan amount can increase to $20 million.
As a business, if you are not interested in getting funding from a CDC, your best option is the SBA 7a loan.
Requesting a SBA 504 Loan
The SBA 504 loan application resembles that of the SBA 7a loan in terms of the amount of time and documents needed to get the financing.
In addition, your business will need to provide extra documents on the property that is being funded.
Either way, consider an appropriate amount for your business and whether you can satisfy your lenders’ requirements.