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What is an SBA 504 loan and how can you apply for one? 504 Capital Corporation

What is an SBA 504 loan and how can you apply for one?

SBA stands for the U.S. Small Business Administration. The SBA is an independent arm of the U.S. government created in 1953 to stimulate local and national economies by providing entrepreneurs and small business owners with access to financing to start or expand their businesses. By making it easier for entrepreneurs and small business owners to obtain funding, more businesses can get started, leading to greater employment opportunities and new revenue streams.

An SBA 504 loan is a specific product that can be used by entrepreneurs and small business owners to purchase existing buildings or land, to construct new facilities or renovate an existing building, to make land improvements, to purchase long-term machinery, or to refinance debt connected with the expansion of a business through new or renovated facilities or equipment.

SBA 504 loans provide a number of advantages for entrepreneurs or business owners. Here are some of the SBA 504 loan details:
-They generally offer better terms and higher loan amounts than traditional business loans
-There are no balloon payments needed at the end of the term
-They only require a 10% down payment versus the 20% or higher amount normally needed
-They are fixed-rate loans versus the variable rates offered by other financing companies

To start the application process for an SBA 504 loan, lenders should look for a Certified Development Company (CDC) such as 504 Capital Corporation. 504 Capital Corporation is a non-profit CDC certified by the SBA to assist entrepreneurs and small business owners to get access to financing and all of the other benefits that come with an SBA 504 loan. We have established connections with approved lenders and we can handle the entire application process for you, from start to closing.

We are also one of the few CDCs in the United States operating under an Accredited Lenders Program (ALP) designation, which makes us SBA experts and provides us with additional authority to open, expedite, and close your loan when necessary.

If you have a plan in place for a new business or business expansion, come talk to us about how we can put the wheels in motion to make your project a success.

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