Jan 29

SBA 504 Loans

Isba 504 loanf you are a small business owner looking to obtain financing do not look past a 504 loan. Why? There are a number of advantages but here are a few of the top reasons:

  • easier to secure SBA 504 loan financing versus conventional CRE loans
  • SBA 504 loans are designed to finance TOTAL project costs
  • SBA 504 loans have lower equity requirements than conventional CRE loans
  • terms of loans are more advantageous for small business owers

 

If you are eligible for a SBA 504 loan, it is definitely an option looking into. Here is a list of requirements that would make your business eligible;

 

  • Be for-profit and not a publicly-traded business
  • Have a tangible net worth (including affiliates) not to exceed $15 million
  • have an average net income not more than $5 million over the previous two years
  • Have the personal liquidity (non-retirement, unencumbered) of each principal/guarantor not exceed the total project costs of the proposed 504 loan
  • Have ownership comprised of 51% US Citizen or resident alien (Legal Permanent Residents), some flexibility on this.

 

Joe Heffernan