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 Mason 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 Specialists Near Me In Mason 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 Mason 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 development corporation in Mason County. The loan is ideally suitable for a small company that is interested in building or purchasing their owner-occupied industrial real estate.
The program works by bringing two lenders together to fund the purchase of industrial real estate. Usually, these two lenders are the CDC and a conventional lender or bank.
These plans work where the bank loans the customer as much as 50 percent, CDC loans as much as 40 percent while the customer chips in the 10 percent usually as a cash deposit.
Loan Requirements for a SBA 504 Loan
There are 2 main requirements that your business in Mason County WA must meet in order to get approved for a SBA 504 loan. These include having a credit score of 680 plus and a capability to make a 10 percent down payment for the project.
Besides the two, you will need to not have the needed financing form any other source or be involved in the property rental investment.
Your business in Mason County WA will have to have a significant 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 as well as occupy 51 percent of the building.
SBA 504 loans are therefore ideal for any business that has an interest in the purchase of industrial property and can guarantee 51 percent tenancy of the space while renting the remaining 49 percent.
Loan Terms and Interest Rates
The two different types of loan— from the bank and the CDC– that comprise the SBA 504 Loan generally have different terms, limitations, rates, and fees.
The rates combined comprise 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 limitation on the terms, costs and interest rates that is given by the CDC which covers 40 percent of the whole project cost.
With a 10-year CDC loan, the fixed rates 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 refrain from doing the same for the standard lenders such as banks or other banks which leaves room for negotiations for the loans.
However, the interest rates are normally 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 multiple 504 loans for several reasons, the loan amount can increase to $20 million.
As an organization, if you are not thinking about getting financing from a CDC, your finest alternative 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 paperwork needed to get the funding.
Furthermore, your company will have to provide additional documentation on the property that is being funded.
In any case, consider a suitable amount for your business and whether you can meet your lenders’ requirements.