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504 Loan Benefits

The 9 Benefits of 504 Loans

There are many reasons you might choose to use a SBA 504 loan. Below, you can read the top 9 and discover why SBA 504 loans are the best-kept secret in the world of commercial property and major fixed asset financing.

  1. 90% Loan-to-Cost Financing 
    Up 90% of your total project cost can be financed with a SBA 504 loan. If you look to get the typical commercial loan from a bank, you’ll get somewhere around 70-80% financing. You can preserve more capital and use it to aggressively grow your business by pursuing a SBA 504 loan.
  2. Save On Interest
    You can get variable interest rates with other loans, but they rarely make sense. When it comes to commercial property financing with a SBA 504 loan, you get below-market, fixed interest rates. Over the long-term, you save more money which you can instead divert towards growing your business.
  3. Smaller Monthly Payments
    Cash flow is always difficult in the early years of business. Because 504 loans have longer amortization schedules (10 – 25 years), you can pay a smaller monthly payment. That way, you have more cash available to hire top employees or market your business.
  4. No Surprises, like Balloon Payments
    Lenders use certain loan features, such as balloon payments, calls, and covenants to protect themselves. What this means to you is that you can suddenly find yourself in a dicey situation with a large payment due and no way to pay it. With SBA 504 loans, you have a predictable payment schedule, which gives you peace-of-mind.
  5. Close Fast – Usually 30 Days
    We work our hardest to give you access to this financing as fast as possible. It can be difficult to access this financing, as Federal regulation governs who gets it. But, we have years of experience working with this financing and can usually help you get access within a month.
  6. We Specialize in the Process and Make it Simple
    504 loans are all we do. Even though they’re complex, because we specialize exclusively in 504 loan administration, the process is as simple and straightforward for you as it can be.
  7. Assumable Loans
    If you decide you need to sell the commercial property or fixed asset, then the person you’re selling to can assume the loan, along with the below-market, fixed interest rates.
  8. No Need to Change Banking Relationships
    We do our best to keep things simple because you already have enough on your plate in operating your small business. You never have to change any of them when you work with us to access 504 financing.
  9. It’s a Better Choice than Commercial Loans
    Ordinary commercial loans are made to benefit the lender, not you. If you’re serious about owning commercial property or other major fixed assets, 504 loans simply represent the best overall choice.

If this sounds good to you, contact us to learn more about applying for 504 financing today!