Drive Expansion with SBA 504 Loan Solutions
Your pathway to expansion and prosperity.
What is an SBA 504 Loan?
An SBA 504 loan is a long-term, fixed-rate loan provided through Certified Development Companies (CDCs) in partnership with lenders. This loan program is specifically designed to facilitate economic development and job creation by providing small businesses with financing for major fixed assets, such as:
- Real Estate
- Equipment
The SBA 504 loan program operates through a unique structure involving three parties: the borrower, a conventional lender, and a Certified Development Company (CDC).
Achieve More With The SBA 504 Loan
Customized loans for your unique growth journey.
Key Features and Benefits
- High Loan Amounts: SBA 504 loans can fund projects up to $5 million (or more in some cases) for small businesses.
- Long-Term Fixed Rates: Enjoy long-term fixed interest rates, which provide stability and predictability in your loan payments.
- Low Down Payment: Typically, the borrower contributes as little as 10% down, making it easier to preserve working capital.
- Flexible Use of Funds: Funds can be used for purchasing land, buildings, and equipment, as well as for building renovations and improvements.
Drive Expansion with SBA 504 Loan Solutions
Invest in your future with confidence.
Eligibility Requirements
To qualify for an SBA 504 loan, your business must meet the following eligibility criteria:
- Operate for Profit: Your business must be a for-profit entity, including corporations, partnerships, and sole proprietorships.
- Meet Size Standards: Your business must meet the SBA’s size standards, which typically means having a tangible net worth of less than $15 million and an average net income of less than $5 million after taxes for the preceding two years.
- Use of Proceeds: The loan proceeds must be used for fixed assets, such as land, buildings, and equipment that will benefit the business.
Application Process
Applying for an SBA 504 loan involves several steps, including:
- Prequalification: Determine if your business meets the basic eligibility criteria.
- Loan Application: Work with a lender and a Certified Development Company (CDC) to complete the loan application and provide required documentation.
- Approval Process: The CDC and lender review your application. Once approved, the SBA reviews and guarantees a portion of the loan.
- Loan Closing: Finalize the loan terms and agreements. The CDC provides funding, and the lender disburses the funds to the borrower.
How SBA Everyday Can Help
At SBA Everyday, we specialize in helping small businesses navigate the SBA 504 loan application process. Here’s how we can assist you:
- Expert Guidance: Our advisors provide personalized guidance to help you understand the SBA 504 loan program and determine if it’s the right fit for your business.
- Application Assistance: We assist you in preparing your loan application, ensuring all required documentation is complete and accurate.
- Lender Match: We connect you with participating lenders and CDCs that offer SBA 504 loans, tailored to your business’s needs.
- Ongoing Support: From application submission to loan disbursement, we provide ongoing support to ensure a smooth and successful funding process.
Get Started Today
Ready to take advantage of the benefits of SBA 504 loans for your business? Contact SBA Everyday to learn more about how we can help you secure the funding you need to grow and prosper. Our dedicated team is here to provide expert advice and support every step of the way.
Contact SBA Everyday today to get started on your SBA 504 loan journey. Let us help you unlock the potential of your business with tailored financing solutions.