SBA 504 Loan
Can your business benefit from a fixed rate, below market loan with a 10-20 year term and only 10% down?
If you plan to purchase, construct or improve commercial real estate the SBA 504 loan could have key advantages for you.
- You can borrow up to 90% of your financing needs, saving your cash for business expenses.
- Repayment terms are longer than conventional loans, making your monthly payments smaller
- The interest rate is currently lower-than-market.
- No balloon payment Loan proceeds can be used to purchase, construct or improve commercial and industrial real estate, purchase and install heavy machinery and equipment and finance your loan costs. (50% Owner occupancy on existing and 60% for new construction is required.)
The Typical SBA 504 Loan Structure
- AEDC will work with your bank to submit your loan application to the Small Business Administration.
- AEDC Loan officer Kelli Sterling has many years of experience with successful 504 loan underwriting.
- The bank-funded portion of your loan will typically have competitive rates and terms due to minimal bank exposure on the project.
- Loans from $50,000 to $5 million (some restrictions apply)