MCC’s SBA 504 Loan Program:
Commercial Real Estate Loans for Business Owners
By purchasing/constructing commercial real estate using our 90% loan-to-cost 504 Loan Program instead of leasing, you will have an asset that may outlive your business and may produce rental income years from now, all while lowering your current real estate expenses. Our typical borrowers reduce their monthly real estate expenses up to forty percent (40%) by owning instead of renting their facility.
Here are the highlights of our SBA 504 Loan Program:
- Commercial loans for small to mid-sized businesses.
- Financing for fixed assets -- owner-occupied commercial real estate, machinery, and equipment.
- Fixed and/or variable, below-market interest rates.
- Ninety percent (90%) financing of the total project costs (inclusive of closing and soft costs).
- Terms up to 25 years for real estate and 10 years for machinery and equipment.
The advantages of choosing our 504 Loan Program over an ordinary commercial loan paint an even brighter picture for our borrowers. The equity requirement of only ten percent (10%) for most of our borrowers preserves more capital (start-up or special purpose buildings require fifteen percent equity [15%], while start-up and special purpose buildings require twenty percent [20%]). You also get longer term financing (up to 25 years for real estate), resulting in less impact on your cash flow.
In addition, our loan program offers below-market, fixed interest rates, and there are no balloon payments or restrictive covenants, giving you peace of mind, not lender micro-management.
Small business owners are eligible for our 504 Loan Program if the tangible net worth of their business does not exceed $7.0 million, and the net income of their business does not exceed an average of $2.5 million during the previous two years.
The Bottom Line: The SBA 504 Loan Program from Mercantile Commercial Capital preserves capital and maximizes cash flow for small business owners. So stop renting and start owning now!