SBA 504 LOAN PROGRAM
The SBA 504 Program Defined
The SBA 504 Loan program provides long term, fixed rate financing at a very reasonable interest rate. The SBA 504 Loan Program is for the purchase and use of long term fixed assets (equipment, owner occupied commercial buildings, land). The 504 Program cannot be used for working capital, investment property, speculation, inventory, consolidating or repaying debt, or refinancing.
Is Your Business Eligible For A SBA 504 Loan
The types of businesses that should apply for the SBA 504 program are businesses that are ready to expand by purchasing a building, land or any other fixed asset. Your business must be a for profit organization. Business MUST have good credit (A – C+). Your business must also fall within the size standard set by the SBA..Your business is considered small if it does not have a tangible net worth in excess of $6 million and does not have a average net income in excess of $2 million after taxes for the preceding two years.
Generally, the project assets being financed are used as collateral. Personal guaranties of the principal owners are also required.
Benefits Of The 504 Loan Program
- Low down payment (generally 10% of project cost)
- All project cost can be financed
- Long Term – real estate deals – up to 20 years , heavy equipment 10 – 20 years
- Low interest rate
- Please keep in mind that the SBA 504 loan program is for businesses located in the United States only.
Unsecured Business Loans
No Collateral Or Down Payment Required these loans are for people with good credit that don’t meet SBA loan requirements because they don’t have the down payment or collateral required. We provide up to $150,000 for established businesses. Click here for more information
Factoring Your Account Receivable
Click here for our factoring / accounts receivable program Factoring is another way to obtain working capital for your business. Factoring is based on your clients credit not yours. All business types & stages (including start ups) accepted. Click here for more information