Total Project Costs

Our 90% loan-to-cost 504 Loan Program enables small to mid-sized business owners to own their commercial property without putting their business' livelihoods in jeopardy by putting too much precious capital down on commercial property with rates and amortizations that hurt, rather than help, a business' cash flow. In keeping with that goal, our 504 loans finance closing costs and other normally out-of-pocket "soft" fees as part of our loan amounts. We typically finance 90% of the total project costs (for start-up businesses or for special-purpose/single-purpose properties, an additional 5% equity contribution is required.)

Soft costs such as, title searches and insurance; closing attorneys' fees; appraisal fees; environmental report costs; architect and engineer fees; permits; surveys; impact fees; installation of machinery; small amounts of furniture and fixtures; and so forth are all able to be financed under our 504 Loan Program.

Many times, a borrower will pay for several of these fees out-of-pocket and then receive credit at our loan closing for having paid these as part of their equity injection (down payment). With ordinary financing, most of these fees are paid in addition to putting down 20% to 30% equity. Having to pay 22% to 33% or more in true cash outlays instead of just 10% is a significant difference and one that sets us apart from other commercial lenders.

Financing closing and other soft costs helps keep our borrowers' down-payments to a minimum to preserve more of their capital; it also gives them the highest cash-on-cash return for their new appreciable asset.