Small Business Administration (SBA) 504 loans are great for small business owners or entrepreneurs looking to start or expand their business. SBA 504 loans are specifically designed to provide better opportunities for more people to get loans, in an effort to strengthen the economy and stimulate other business development opportunities via new channels of commerce and employment.
While the application process can take some time in some instances, applying for an SBA 504 loan is well worth the effort for the following reasons:
Interest rates– The interest rate on an SBA 504 loan will almost always be lower than what you’ll get with a business loan from a traditional financial institution.
Repayment terms– SBA 504 loan terms are decidedly better than what you’ll get with traditional business loans. You can take 10 years to repay the purchase of machinery or equipment, and 20 or 25 years when purchasing, renovating, or constructing commercial buildings. Plus, there will be no balloon payments required at the end. Down payment– To make SBA loans more accessible for small business owners and entrepreneurs, SBA 504 loans only require a 10 percent down payment in most cases. Conventional small business loans often require 20 to 40 percent down. The best reason to apply for an SBA 504 loan is that 504 Capital Corporation will walk through the entire process with you. As a not-for-profit Certified Development Company (CDC) with the Small Business Administration, we’re experts in SBA 504 loans. We have existing relationships with qualified lenders so we can help you find the best loan for your small business need. If you have any questions along the way, we’ll be happy to answer them for you. We also operate under an Accredited Lenders Program (ALP) designation, which means we have increased authority to process, close, and service SBA loans, and we can even expedite the process to help push your application through more quickly. Timing can be an important factor when it comes to making business decisions, so the sooner you can get your loan the better you’ll be able to make the most of opportunities.