There are lots of reasons for small business owners to choose the SBA 504 loan. Below, you can read the nine most important benefits of this type of commercial real estate financing for entrepreneurial small business owners.
Ninety-percent (90%) Loan-to-Cost Financing
We can provide up to ninety-percent (90%) financing of the total project cost, which includes the land, construction/renovations, soft costs and closing costs. Conventional commercial loans will require two to three times the equity (20-30% down), so with an SBA 504 Loan a small business owner can preserve more capital which they can use to grow their business.
Long-Term, Below-Market, Fixed Interest Rates
Variable interest rates doesn’t make sense when it comes to small business commercial property financing. The ability to get long-term (up to 25 years), below-market, fixed interest rates makes it possible for business owners to save on interest expenses.
Longer Loan Amortizations
Longer loan amortizations allow for smaller monthly payments, which have less impact on business cash flow.
No Balloon Payments, Calls or Covenants
These are often features of conventional commercial loans which are not in the best interests of small business owners. SBA 504 Loans give business owners more control, more peace-of-mind, and less lender micro-management.
Close within 60 Days
Because we specialize in this type of financing, we’re extremely efficient at it. And we flat-out hustle. We want to get each of our clients to the closing table so they can start enjoying the benefits of commercial property ownership as soon as possible. We despise dilly-dallying and hope you do, too.
Specialists Make the Process Simple
To be completely honest, the type of financing we do is complicated, and that’s why few lenders will lead with the SBA 504 Loan. But this is all we do, and we do it really well. Working with an expert that specializes in the SBA 504 Loan like us makes everything simpler for small business owners.
SBA 504 Loans are always assumable. If another person or business were to purchase a property we’ve previously financed, they would get the benefit of the below-market, fixed interest rates that came with the original loan. If it becomes necessary to sell a property down the road, this is a great feature.
No Disruption of Existing Banking Relationships
Because of our specialization — again, we only finance commercial property for small business owners — there’s no need to worry about changing any of your existing banking relationships. We keep it simple for the small business owners we work with.
It’s the Overall Best Deal for You
As you can see, the SBA 504 loan offers many advantages that aren’t available with conventional commercial financing. Small business owners who are serious about owning commercial property to grow their businesses and plan for retirement should consider this type of specialized financing. After all, it was designed specifically for this purpose!