SBA 504

This program is the bread and butter to most SBA lenders. The reasons are the program not only helps mitigate risks to lenders, but also allows an instrument for long term financing with fixed rates for businesses.

In most cases a 504 loan includes the following:

  • A loan secured by a private lender (Any Bank or Credit Union offering SBA loans) with a lien covering up to 50% of the total project cost.
  • A lean secured by the Certified Development Company (CDC) for up to 40% of the total project cost.
  • A contribution from the borrower of at least 10% of the total project cost.

A rule for most commercial loans is that borrowers need some down payment in the project. Traditional lenders can go up to 90% financing with the 504 program; however, that does not mean you will get it. Most lenders today have bottled necked themselves. While one lender may decline your 504 loan request another may not.

At Hoffman Consulting, we have numerous financing options including SBA 504. Give us a call today to help secure and structure your loan to give you the most added value.

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