SBA 504 Loan in Island County WAAnother 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 Island 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 Island 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 Island 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.

More About SBA 504 Loans

Qualifying For a SBA 504 Loan

The SBA 504 Loan is a program that also incorporates a community advancement corporation in Island County. The loan is ideally suitable for a small company that is interested in building or buying their owner-occupied commercial property.
The program works by bringing 2 lenders together to fund the purchase of commercial real estate. Usually, these 2 lenders are the CDC and a conventional lender or bank.
These arrangements 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 normally as a cash down payment.

Loan Requirements for a SBA 504 Loan

There are 2 main requirements that your organization in Island 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 have to not have the needed funding form other source or be associated with the property rental investment.
Your business in Island County WA will have to have a considerable net worth of less than $15 million, have the ability to make the loan repayment on time from the anticipated operating cash flow from business in addition to inhabit 51 percent of the building.
SBA 504 loans are therefore ideal for any company that has an interest in the purchase of commercial property and can ensure 51 percent tenancy of the space while renting the remaining 49 percent.

Loan Terms and Interest Rates

Island County SBA 504 LoanThe two different kinds of loan— from the bank and the CDC– that comprise the SBA 504 Loan usually have different terms, limits, rates, and costs.
The rates combined comprise the overall loan rate on your CDC/SBA 504 Loan.
Normally, your business will pay a rate of interest 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, costs and rates of interest that is given by the CDC which covers 40 percent of the entire 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 traditional lenders such as banks or other financial institutions which leaves room for negotiations for the loans.
Nevertheless, the interest rates are usually 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 reasons, the loan amount can increase to $20 million.
As a company, if you are not thinking about getting financing from a CDC, your finest alternative is the SBA 7a loan.

Applying for a SBA 504 Loan

The SBA 504 loan application is similar to that of the SBA 7a loan in regards to the amount of time and documents needed to get the financing.
In addition, your company will have to give additional documents on the property that is being funded.
In either case, consider a proper amount for your company and whether you can satisfy your lenders’ needs.

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