SBA 504 Loans
A LONG-TERM FIXED-RATE SOLUTION.
The U.S. Small Business Administration established the 504 loan program to help businesses purchase or expand commercial real estate and acquire equipment while preserving working capital. A 504 loan puts such fixed-asset projects within reach for small businesses by requiring lower down payments than conventional financing and providing long-term, fixed-rate interest rates. It also reduces the risk to lenders through its structure as second mortgage financing.
Eligible 504 loan uses:
- Land and building purchases
- Building construction, expansion, and remodeling
- Equipment and machinery purchases
- Professional fees and soft costs (i.e. appraisals, attorney fees, etc...)