SBA 504 Loan Program

SBA News SBA Changes 504 Ruleson Refinances SBA Loan Changes SBA Loans - WHy the Drop in Funding?

DUE TO PRESIDENT OBAMA'S STIMULUS PACKAGE, ALL SBA FEES ARE TEMPORALLY WAIVED. 

SBA 504 loan program is hands down, one of the best commercial real estate loans in the industry for business owners.  Primary benefits include, low down payment (10%) and some of the lowest fixed interest rates in the business.  Amortization periods can be as long as 30 years as well with the SBA 504 loan.

Commercial Finance Advisors "Gets Ink" regarding SBA Loans

The 504 is essentially two loans, the first lien position conventional bank piece and the second lien loan is the CDC or SBA loan.  The CDC piece is normally fixed and amortized over 20 years ( a huge benefit in and of itself)...  The bank loan ranges in terms like any commercial real estate loan, though most are amortized over 25 years (30 years is still possible) with fixed periods ranging from 5 to 10 years.  The banks loan sits at 50% loan to value and the SBA loan covers 40% loan to value - the borrower contributes the last 10%, via the down payment. 

Another major benefit to the SBA 504 loan is how the down payment is calculated compared to conventional loans.  The down payment is factored off the "total project cost", meaning fees like closing costs, 3rd party costs, renovation costs, etc. can be rolled into the loan and the 10% down payment is factor off that total amount, ie the "total project cost".  As a comparison, most conventional bank loans have the down payment calculated off of the purchase price, than all other fees/cost go on top of the down payment.  This substantially increases the amount of cash borrowers have to put into the loan.    See example:

SBA 504 Qualifying Parameters:

• Purchase and Refinances NOW eligible on "expansion" projects.
• Business owner must occupy 51% or more of the building. 
• Business net worth cannot exceed $8,500,000.
• Net income of business cannot exceed an average of $3 million during the previous two years.

The Bottom Line: The SBA 504 Loan Program from Commercial Finance Advisors preserves capital and maximizes cash flow for your small business.  It also provides the highest level of financing with low, fixed rates.  Get Approved now and start building an asset rather than paying an expense by filling out our commercial loan application. 

248 885-8797

 *start-up or special purpose buildings require fifteen percent equity, while start-up and special purpose buildings require twenty percent 20%.

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Commercial Finance Advisors, Inc.
(248) 885-8797 Phone
(866) 337-3141 Fax
http://www.cfa-commercial.com/

Main Office
261 E Maple Rd
Birmingham, Michigan 48009

Second Office
Roanoke, Virgina

 

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