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SBA Loan Rates - Current SBA loan rates for small businesses via the 504 and 7a program.
SBA 7a Loans - SBA 7a loans for commercial real estate, working capital, business debt consolidation & other business uses.
SBA 7a Loan for Physicians - SBA loan for medical practice financing, partner buyout, equipment or building construction.
Renewable Energy Project Financing - Non-SBA financing for Renewable Energy Power Production, Power Plants, etc.
|A Comparison of The SBA 504 vs. Traditional Commercial Financing|
|Traditional Commercial Financing||SBA 504|
|Down Payment: 20 to 35%||Down Payment: 10 to 20%|
|Closing and Soft Costs: Paid Out of Pocket||Closing & Soft Costs: Most Rolled Into Loan|
|Term: Typically 3 or 5 years with a balloon or call
and a 10 or 15 year amortization
Term: 1st Mortgage: Fully Amortized over 25 years
|Rates: Low Adjustable Rates||Rates: Low Fixed or Adjustable Rates for 1st mortgage, very low rate for fixed rate 2nd mortgage|
|Fees: Varies||Fees: Yes|
|Prepayment Penalty: Typical||Prepayment Penalty: Yes|
SBA 504 Loan Program Requirements and Guidelines - more detailed information about 504 small business loans
Green SBA 504 - Commercial Loan for Green Building Construction or Renovation, Renewable Energy Production (Solar, Wind, Biodiesel, etc.) or Energy Efficient Retrofit
The 504 program offers excellent benefits for small and mid-sized business buying or refinancing commercial property, but the real beauty of the program is what it can do for you. For instance...
The 504 loan allows you to purchase property and finance the costs to:
In addition to the cost of the improvements you can also finance the closing costs and soft costs and if you are building on land that you already own you can use the land as equity for the transaction.
A huge number of property types, occupations and businesses are eligible for 504 financing including Attorneys, CPA's, Veterinarians, Manufacturing Facilities and Light Industrial Buildings and most "owner occupied" or "owner operated" businesses, so please contact us to see if you can qualify.
Below are some common applications (listed alphabetically) for the program and below is a link to ineligible businesses:
The many benefits of the SBA loan programs make them hard to overlook when considering various types of commercial mortgage financing. They offer tremendous benefits for small and mid sized businesses. Perhaps the most obvious benefit is that...they are actually available.
Call us toll free at 1-800-414-5285 to find out how an SBA loan might benefit your business...or fill out a contact form by clicking the button below.
1. The program allows a down payment or equity of as little as 10%.
2. The loan allows you to finance most closing costs and soft costs reducing out of pocket expenses to approximately 10% of the project cost and creating a near 90% loan to cost transaction.
3. The 504 loan enables you to build wealth in commercial property which can be a more secure long term strategy than other investments.
4. The SBA 504 is a commercial mortgage that is fully amortized over a long term with "below market" rates allowing for lower payments.
Once approved, there is no balloon, re-qualifying or refinancing necessary later. This saves you the future costs of a refinance and removes any anxiety about qualifying for a new loan at a later date.
5. The 504 enables you to own commercial real estate and take advantage of the significant tax breaks that come with ownership.
6. The program has always had a moderate fee structure.
7. The SBA 504 allows you do to a purchase and renovation of a commercial property in one loan which allows you to "retrofit" an existing property to your needs.
504 loans also allow increased loan amounts for the following types of small and mid sized businesses:
1. New construction and existing buildings that incorporate Green construction into their buildings and facilities are now eligible for much larger 504 loans if they meet the public policy goal of a 10% decrease in energy consumption. Any business eligible for a 504 loan that adheres to green energy policies can now take advantage of the excellent terms afforded by the 504 and the total cost of a green project can be in the $13 to $14 million range.
The use of solar panels could be enough to qualify a building for this benefit.
2. Small and mid-sized businesses generating renewable energy or renewable fuels such as Solar Power, BioMass, Hydropower, Ocean Thermal, GeoThermal and Wind can now obtain a commercial mortgage loan to finance the purchase or construction of commercial real estate.
And power generation does not have to be your primary business. Any business that is eligible for the 504 program can utilize this significant enhancement.
3. Larger 504 loans are also available to small and mid sized businesses that work with qualified architects and engineers in creating a "green building using "sustainable design" as defined by the Leadership in Energy and Environmental Design (LEED) standards and the Green Building Certificate Institute. In some cases there must be renewable energy production to qualify for maximum financing.
*SBA 504 Loans are currently available up to $12MM+ for:
SBA 504 Refinance - The 504 program can now be used to refinance owner occupied commercial property. The Economic Stimulus and the American Recovery and Reinvestment Act made an SBA or CDC 504 refinance possible with an expansion and now The Jobs Act makes debt refinances possible starting on February 28th 2011. (Up until recently, 504 financing was only available for purchase, acquisition or new construction of commercial real estate).
SBA 504 Loan Prepayment Penalty - How the SBA 504 loan prepayment penalty is calculated.
SBA Loan Alternatives: SBA Loans aren't always the answer and there are alternatives...if you have Assets.
Asset Based Loans - Asset based loans are a quick way to access capital for your business. The key is actually having an "asset" that can be financed. AB Lending includes Purchase Order Financing, Contract Monetization, Invoice Factoring & the financing of other assets.
Commercial Mortgage Articles, Small Business Real Estate and other Resources:
SBA 504 Blog - Our blog discussing the 504 and 7a loan programs and how they can help your business.
Self Storage and Mini Storage - Self Storage Businesses are now eligible for SBA financing.
Green Energy Resources - Our ever-growing list of resources to help you better understand the benefits of Green Building.
Prefabricated Modular Construction - Prefab construction for energy efficient commercial buildings.
Liquor Store Loans - SBA loans are an excellent low down payment source of liquor store and wine store financing.
Renewable Energy Power Project Financing - Funding for renewable energy projects and power plants $10 million and up.
SBA Jobs Bill - The SBA Jobs Bills would bring significant changes to Small Business Administration loan programs.
Commercial Hard Money Loans - No Doc Commercial Loans - aka Private Money & Commercial Hard Money Loans.
CalCAP Loans for California Small Businesses - California small business loan program.
504 A Minus Loan Program - New SBA "A -" program for businesses who have recovered from the Recession.
SBA Financing for Veterinarians - 100% financing for a Veterinary Clinic, Hospital or Practice.
100% Financing - Commercial property loans with no down payment.