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 Okanogan 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 Okanogan 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 Okanogan 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 includes a community advancement corporation in Okanogan County. The loan is ideally suitable for a small company that is interested in building or purchasing their owner-occupied commercial property.
The program works by bringing two lenders together to fund the purchase of industrial property. Usually, these two lenders are the CDC and a standard lender or bank.
These plans work where the bank loans the debtor as much as 50 percent, CDC loans as much as 40 percent while the customer chips in the 10 percent typically as a cash down payment.
Loan Requirements for a SBA 504 Loan
There are two primary requirements that your organization in Okanogan County WA should meet in order to get approved for 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 required funding form any other source or be associated with the real estate rental investment.
Your organization in Okanogan County WA will have to have a significant net worth of less than $15 million, have the ability to make the loan repayment on time from the expected operating cash flow from business as well as occupy 51 percent of the building.
SBA 504 loans are therefore perfect for any organization that has an interest in the purchase of industrial real estate and can ensure 51 percent tenancy of the area while leasing the remaining 49 percent.
Loan Terms and Interest Rates
The two various types of loan— from the bank and the CDC– that comprise the SBA 504 Loan usually have various terms, limitations, rates, and costs.
The rates combined make up the total loan rate on your CDC/SBA 504 Loan.
Generally, your organization will pay an interest rate of in between 4 and 6 percent on the whole loan with a repayment length of 25 years.
The SBA sets a limitation on the terms, fees 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 interest rate 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 traditional lenders such as banks or other banks which leaves space for settlements for the loans.
However, the interest rates 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.
Considering that borrowers can take on several 504 loans for multiple reasons, the loan amount can increase to $20 million.
As an organization, if you are not thinking about getting financing from a CDC, your best alternative is the SBA 7a loan.
Getting 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 documentation needed to get the funding.
In addition, your company will have to provide additional documents on the property that is being funded.
In either case, consider a proper amount for your business and whether you can satisfy your lenders’ requirements.
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