SBA 504 Program Can Help You Get Up to 90% Financing on Owner-Occupied Commercial Real Estate

Are you a small business owner looking to expand and your growth plan includes acquiring the commercial property of your dreams?  Are you looking to preserve working capital for continued growth?  Did you know that a SBA 504 Loan may be the solution for you with as little as 10% down payment?

The 504 program is designed to promote inline imageeconomic development by helping healthy, growing businesses finance the acquisition of long-term fixed assets, such as land, buildings, machinery and equipment, or the building, modernizing, renovating or restoration of facilities. Here are some more important things to know about SBA 504 Loans:

  • The SBA 504 program offers financing in partnership with conventional lender such as Standard Bank to help borrowers conserve working capital and lock in a below market, 20-year fixed rate
  • Interest rates are attractive and fixed for 20 years!
  • Typical projects range from $300,000 to $15,000,000
  • Eligible Project Costs include land acquisition, building acquisition, new building construction, renovation, equipment, furniture and fixtures, professional fees, interim interest, construction contingency, soft costs and refinancing eligible conventional debt
  • Property financed must be owner-occupied
  • Eligible business for SBA 504 program must be a for-profit corporation, partnership or proprietorship with a net worth of $15 million or less.  Average net profits after taxes cannot exceed $5 million per year for the previous two years
  • The entire loan approval process takes about 20-28 days from the receipt of the completed loan application

Here’s what a typical example ($1,000,000 Project) looks like:

financing chart

Don’t hesitate – take advantage of the opportunity to grow your business today.  Speak to one of our Business Bankers at (866) 499-2062 about your company’s needs.   

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