The SBA 504 Program can help small businesses get up to 90% financing on the purchase of owner-occupied commercial real estate and related costs!
Eligible Project Costs include land acquistion, building acquisition, new building construction, renovation, equipment, furniture and fixtures, professional fees, interim interest, construction contingency and soft costs. The refinance of eligible existing debt is acceptable as part of an expansion project under SBA 504 guidlines.
Example for a $1,000,000 project:
| CONVENTIONAL FINANCING | FINANCING WITH 504 PROGRAM | ||||
| Conventional Lender | $750,000 | 75% | Conventional Lender | $500,000 | 50% |
| Borrower Contribution | $250,000 | 25% | SBA 504 Loan | $400,000 | 40% |
| Borrower Contribution | $100,000 | 10% | |||
| TOTAL | 100% | 100% | |||
* The SBA 504 program offers financing in partnership with conventional lenders to help borrowers conserve working capital and lock in a below market, 20-year fixed rate.
Interest rates on the 40% SBA 504 portion are well below market (approx. 4.88% all-in as of November 2010) and fixed for 20 years!
Typical projects range from $150,000 to $10,000,000.
Contact Mac Dobson 312.360.3306
