SBA 504 Loans for Agricultural Properties
It may be surprising to learn that SBA 504 loans may also be used to finance the purchase or construction of real estate and equipment used for certain agricultural purposes. Whether you are purchasing a new vineyard or looking to build a packing plant to expand your blueberry farming operation, the 504 loan program offers many benefits to enable you to preserve working capital and secure your financing on a long-term basis. We understand the agricultural business is highly cyclical, placing a premium on capital preservation. With the SBA 504 loan, experienced agribusiness owners may only need to contribute a minimum of 10% (15% if the property is deemed special use) of the purchase price or total project costs, thereby preserving liquid assets for future working capital needs.
15 Years of Experience
Since starting our own small business 15 years ago we have helped numerous agricultural business owners achieve their goals of owning their own commercial real estate. We’ve financed properties for nurseries, fruit processors, vineyards, cotton wholesalers, dairy farmers, and more.
Build Your New Agricultural Facility to Your Specifications
One of the best benefits of the SBA 504 loan is that business owners are allowed to finance constructions costs, closing costs, and soft costs (including architectural and engineering fees, permit and impact fees, and interest during construction). This benefit greatly reduces the agribusiness owner’s cash outlay when compared with conventional financing. But perhaps more importantly, we recognize that being able to customize your facility to your specific needs, either by constructing a new ground up building or renovating an existing property, is especially critical as advances in technology and cost control can mean the difference between a profitable, growing business and having to discontinue operations. As the majority of our 504 loans have a construction component, we have the experience and expertise to help you navigate through this process.