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 Walla Walla 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 Walla Walla 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 Walla Walla 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 Walla Walla County. The loan is ideally suitable for a small business that has an interest in building or purchasing their owner-occupied commercial real estate.
The program works by bringing 2 lenders together to fund the purchase of commercial property. Typically, these 2 lenders are the CDC and a standard lender or bank.
These plans work where the bank loans the debtor up to 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 main requirements that your company in Walla Walla County WA must fulfill in order to get approved for a SBA 504 loan. These consist of 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 have to not have the needed financing form other source or be associated with the property rental financial investment.
Your business in Walla Walla County WA will have to have a substantial net worth of less than $15 million, have the ability to make the loan repayment on time from the anticipated operating capital from the 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 industrial property and can ensure 51 percent occupancy of the space while renting out the remaining 49 percent.
Loan Terms and Interest Rates
The two different kinds of loan— from the bank and the CDC– that make up the SBA 504 Loan normally have various terms, limits, rates, and costs.
The rates combined comprise the overall loan rate on your CDC/SBA 504 Loan.
Normally, your organization will pay a rate of interest of in 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 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 financial institutions which leaves room for settlements for the loans.
Nevertheless, the rate of interest are usually in between 5 and 9.5 percent with a reset point. The loan amount for a SBA 504 loan is typically around $14 million.
Since borrowers can take on several 504 loans for numerous projects, the loan amount can increase to $20 million.
As an organization, 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 resembles that of the SBA 7a loan in terms of the amount of time and documentation needed to get the funding.
Furthermore, your business will have to give additional documentation on the commercial property that is being funded.
In any case, consider an appropriate amount for your organization and whether you can meet your lenders’ requirements.