SBA 504 Loan in King 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 King 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 Companies Near Me In King 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 King 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 integrates a community development corporation in King County. The loan is preferably ideal for a small company that has an interest in building or purchasing their owner-occupied industrial property.
The program works by bringing two lenders together to fund the purchase of commercial real estate. Typically, these two lenders are the CDC and a standard 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 generally as a cash down payment.

Loan Requirements for a SBA 504 Loan

There are 2 primary requirements that your company in King County WA need to fulfill in order to qualify for a SBA 504 loan. These include having a credit rating of 680 plus and a capability to make a 10 percent down payment for the project.
Besides the two, you will have to not have the required financing form other source or be associated with the real estate rental investment.
Your organization in King County WA will need to have a substantial net worth of less than $15 million, have the capability to make the loan payment on time from the anticipated operating cash flow from business in addition to occupy 51 percent of the building.
SBA 504 loans are therefore ideal for any company that is interested in the purchase of commercial real estate and can ensure 51 percent tenancy of the space while renting out the remaining 49 percent.

Loan Terms and Interest Rates

King County SBA 504 LoanThe two various kinds of loan— from the bank and the CDC– that comprise the SBA 504 Loan typically have different terms, limits, rates, and costs.
The rates combined make up the total loan rate on your CDC/SBA 504 Loan.
Normally, your organization will pay an interest rate 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 interest rates 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 standard lenders such as banks or other banks which leaves space for settlements for the loans.
Nevertheless, the rates of interest are generally 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 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.

Obtaining a SBA 504 Loan

The SBA 504 loan application is similar to that of the SBA 7a loan in terms of the amount of time and documentation needed to get the financing.
Furthermore, your company will need to provide extra paperwork on the commercial property that is being funded.
Either way, consider an appropriate amount for your company and whether you can satisfy your lenders’ requirements.

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