Can Any Lender Do a 504 Loan

Can Any Lender Do a 504 Loan?

Here’s the truth about SBA 504 loans: any lender can do one.

There’s nothing magical or mystical about it; no special club we belong to that enables us to provide 504 loans. But before you run out and grab the first banker you see and demand a 504 loan, a word of caution: there’s a difference between can and should.

We often compare what we do to a medical procedure. If you’re in need of surgery or some sort of specialized treatment, would you go with the first doctor you found in the phone book or the first recommendation from a friend? No way. You’d do your homework and choose the doctor with the most experience and the highest success rate to give yourself the best chance at a full recovery.

Now let’s be clear: getting a commercial real estate loan isn’t a life-or-death matter. But the right commercial real estate loan can make a huge difference in the life of a business and the life of a business owner. Commercial real estate ownership comes with many financial as well as intangible benefits, and getting the right loan that will maximize your investment is important.

So how do you choose?

The quick and marginally-accurate litmus test is whether your potential commercial lender does more than a dozen SBA 504 loans in a year. An SBA 504 loan has more moving parts and is more complex than a conventional commercial loan, and very often requires a level of experience you don’t get doing just a few 504 loans, or doing them infrequently. If a lender can’t provide a track record of successful 504 loan closings and happy customers, then it would be best to keep looking.

Technically, we could do business acquisition loans or working capital, but run for the hills if we try to sell you on it. Those things aren’t our specialty and you won’t get the best service or product if we tried to do them for you. If you’d like to read more about what makes us different and why you should choose us for your (or your clients’) commercial real estate financing, go here.

And if you have any questions about what we do, how we do it, or why we started doing it in the first place, call us at 866-622-4504 or email 504experts@mercantilecc.com.

– Your 504 Experts

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