Entrepreneurs wanting to start a business in Chesapeake and small business owners looking to expand their operations have a fantastic loan option from the U.S. Small Business Administration (SBA). The SBA is an independent agency of the federal government that was created in 1953 to aid, counsel, assist, and protect the interests of small business owners. The idea behind creating the SBA was to promote overall economic development by making it easier for small businesses to have easier access to financing to encourage business growth and the creation of jobs.

One of the most popular products the SBA offers is called an SBA 504 loan. These loans provide long-term, fixed rates for purchasing new land or an existing building for renovation, making site improvements, and buying machinery or equipment. The loan can generate sales or customer traffic for your business and maximize cash flow.

Loans are available through a Certified Development Company (CDC) that works as an intermediary between lenders and borrowers. CDCs are experts in SBA loan products and have the authority to process, close, and service SBA 504 loans.

Commercial Real Estate, Construction, and Equipment Loans in Chesapeake

Equipment, construction, factory-grade machinery, heavy equipment, and commercial real estate are just some of the things that will need updating as your organization reaches new heights. SBA 504 construction loans, equipment loans, and commercial real estate loans in VA grant low-interest rates and attractive benefits that can heighten profitability by scaling your business, increasing sales, and improving operations.

With our Chesapeake capital corporation’s small business financing, we help businesses obtain the assets needed to achieve exponential growth. Discover our Real Estate Loans, Equipment Loans, and Construction Loans to experience your business transformation.

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SBA 504 Loan Benefits

SBA 504 loans are beneficial to both sides. For small businesses looking for financing, they offer:

Easy Financing

Borrowers generally only need a 10 percent down payment to secure an SBA 504 loan, compared with 20-30 percent usually required for conventional business loans offered by financial institutions such as banks or credit unions.

Better Rates

Unlike traditional commercial loans, SBA 504 loans provide fixed interest rates and no balloon payments at the end of the loan term. The rates also tend to be lower because the SBA partially guarantees the loans.

Longer Terms

Extended loan terms can mean lower monthly payments, which is especially beneficial for fledgling small businesses trying to create a customer base. By channeling more monthly funds into marketing/advertising and keeping cash flow positive, longer loan terms help companies to build slowly and powerfully.

Larger Loans

SBA 504 loans can range from as little as $125,000 to as big as $20 million. But you will still need a 10 percent down payment to insure the total loan amount.

For lenders, SBA 504 loans can provide an additional revenue stream for a financial institution or private lender without needing other people to service the loan. Certified Development Companies bring you the borrowers, take care of all the loan processing, and serve the borrower from beginning to closing.

504 Capital Corporation is a non-profit organization founded in 1983 to help small businesses grow, promoting economic development and prosperity in Chesapeake and the Hampton Roads region. We operate under an Accredited Lenders Program (ALP) designation, giving us greater power to expedite the processing of your application and closing of your loan. When loan timing is critical, we’re the SBA lender you should contact.

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LEARN MORE ABOUT OUR SBA 504 LOAN PROCESS IN CHESAPEAKE

OUR SBA 504 LENDERS IN CHESAPEAKE

WHO IS 504 CAPITAL?

504 Capital Corporation was founded in 1983 with a mission of helping small businesses thrive, profit, and promote economic prosperity. We’ve been at it for more than 35 years, and we’ve done a lot of good, but we’re not slowing down anytime soon—in fact, we’re growing.

Our SBA lenders in Chesapeake have expanded their services across state lines to MD and NC, striving to help all small businesses benefit from the SBA CDC 504 loan program. We look forward to serving a whole new range of customers while maintaining our excellent level of service for existing clients.

Your success is our success, and we can’t wait to help you succeed.