504 Benefits for Borrowers

With SBA 504 financing, entrepreneurs can purchase commercial real estate with a down payment as low as 10%.  The small business owner not only gets the tax benefits and appreciation on the real estate, but also locks in occupancy costs for the long term with financing tailored to the entrepreneur's needs.

Low Down Payment and Enhance Cash:
With financing available for up to 90% of the project cost, SBA 504 loans offer an affordable down payment, enabling the entrepreneur to conserve working capital and retain liquidity to meet operating needs.

Long-Term Financing at Competitive Interest Rates:
SBA 504 real estate financing is 20-year, fully amortized financing.  This enables a small business owner to pay for a facility over the long term, avoid risky loan call provisions, and enjoy lower monthly payments.

Predictable Monthly Payments:
SBA 504 financing allows small business owners to fix their business occupancy costs with an attractive 20-year fixed interest rate.

Ownership Options Tailored to Meet Business Owner Needs:
An entrepreneur can purchase and hold ownership to a building personally, in the name of the business, or even set up a holding company for the real estate.  This gives the small business owner the flexibility to maximize tax benefits of ownership and minimize liability in the manner best suited for the entrepreneur and his company.  Additionally, two or more small businesses can receive an SBA 504 loan if they combine to create a real estate holding company.  (This option works especially well for professionals in the medical, veterinary, legal and accounting fields.)

For more detailed information on the 504 program, please click here or on the 'SBA 504 Loans' button above.