SBA 504 Loan in Skagit 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 Skagit 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 Skagit 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 Skagit 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 Skagit County. The loan is preferably appropriate for a small company that has an interest in building or buying their owner-occupied commercial real estate.
The program works by bringing two lenders together to fund the purchase of industrial property. Generally, these 2 lenders are the CDC and a conventional lender or bank.
These plans work whereby the bank loans the borrower 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 business in Skagit County WA must fulfill in order to qualify for a SBA 504 loan. These include having a credit score of 680 plus and a capability to make a 10 percent deposit for the project.
Besides the two, you will have to not have the needed financing form any other source or be associated with the real estate rental financial investment.
Your organization in Skagit County WA will need to have a substantial net worth of less than $15 million, have the capability to make the loan repayment on time from the expected operating capital from the business as well as occupy 51 percent of the building.
SBA 504 loans are therefore ideal for any company that is interested in the purchase of industrial real estate and can ensure 51 percent occupancy of the area while renting out the remaining 49 percent.

Loan Terms and Interest Rates

Skagit County SBA 504 LoanThe two different kinds of loan— from the bank and the CDC– that make up the SBA 504 Loan generally have different terms, limits, rates, and costs.
The rates integrated comprise the overall loan rate on your CDC/SBA 504 Loan.
Typically, your company will pay a rate of interest of between 4 and 6 percent on the whole loan with a repayment length of 25 years.
The SBA sets a limitation on the terms, costs and rate of interest that is given by the CDC which covers 40 percent of the entire project expense.
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 typically 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 numerous 504 loans for multiple reasons, the loan amount can increase to $20 million.
As an organization, if you are not thinking about getting funding from a CDC, your best alternative is the SBA 7a loan.

Requesting 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 need to provide extra documentation on the commercial property that is being funded.
Either way, consider an appropriate amount for your organization and whether you can satisfy your lenders’ needs.

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