Here we’ve compiled a list of common mistakes made when applying for 504 SBA loans, to help small business owners gain solid footing. We hope you enjoy!
Common Mistakes When Applying for 504 SBA loans:
- A helpful checklist can be found Here.
- Deposit regular, consistent amounts into your business bank account several times per week to show potential lenders that your business is profitable.
- It is important to deposit ALL revenue; the higher your balance, the more lenders may be willing to lend to you.
- As always, it’s a good idea to keep overdrafts to a minimum at this time.
- Develop a strategic, detailed, thoughtful business plan, and be ready to present it during meetings with potential lenders.
- Clearly-defined concepts, products/services, goals, audiences, and projected financial information will all impress potential investors.
- Be aware of the guidelines and rules associated with SBA 504 loans:
- The capital lent out to small business owners under this title is reserved for very specific business-related purchases, such as real estate, machinery, and buildings.
- As the small business owner you may only be required to pitch in 10% of the total cost, but depending on the size of your loan, this could still be a substantial amount of money.
- Due to its status as a nonprofit working towards economic growth, there are two alternative ways in which you and your business must better your community:
- For every $65,000 received you must create or retain a job
- Create and meet community development/public policy goals
As you can see, there are many small pitfalls as well as a few large chasms when it comes to SBA 504 loans. These small business loans do much to boost our economies nationwide, and can work wonders for your new or struggling small business.
Contact 504 Capital today for your SBA 504 loan. Whether you’re ready to start the application process, are interested in learning more, or aren’t sure whether this is the right loan for you and your business, we’re happy to help. When our service area thrives, we know we’ve succeeded.
Call on 504 when you need Capital. We are here to help.