The SBA 504 loan program is designed to support small businesses with long-term, fixed-rate financing for acquiring commercial real estate and business, fostering community economic development. We can help you simplify the process to make sure you achieve your business goals to set yourself up for success.

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Program Highlights:

• Lower fixed rate options compared to SBA 7A program

• Allows for larger purchase amounts and loan needs, surpassing the $5MM of the SBA 7A program.

• Loan amounts of $15MM+ possible

• Requires real estate to be part of the purchase

• Great refinance option for conventional loans and SBA 7A loans

• Loan-to-Value (LTV): Up to 90% for multi-purpose real estate, 85% for special-purpose real estate.

• Project Structure:

  • 50% Conventional 1st Deed

  • 30% to 40% SBA/CDC 2nd Deed for up to $5MM

  • 10% to 20% Equity Injection

• Maturity Terms:

  • Conventional 1st Deed: Up to 25 years

  • Interim Note: Up to 120 days with interest-only payments

  • SBA/CDC 2nd Deed: Up to 25 years

• Eligible Property Types:

  • Most property types are eligible for 504 funding as long as there is a real estate component as part of the loan request.

 

SBA 504 Green Project:

• The 504 Green Project allows the SBA/CDC 2nd Deed to go up to $5.5MM

• You are able to do various SBA Green projects without using the $5MM cap you have for the combined 7A and 504 program.

• Contact us to learn more

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For more information, please view the SBA’s website here.