SBA 504 Financing for Special Use Properties
What does a water park, a gun range, an airplane hangar, a recycling plant, a car wash, and a mining quarry have in common? Believe it or not they are all property types we have financed with an SBA 504 loan.
15 Years of Experience
Since starting our own small business 15 years ago we have closed over 680 loans, so we can say that we have pretty much seen everything. More importantly, we know exactly what needs to be done from the beginning of the lending process all the way through closing. If a business is eligible for a 504 loan we’d be honored to take a look at your project and let you know how we can assist, no matter how “unique” it might seem to some lenders.
Commercial Real Estate Ownership with the SBA 504 Loan
With the SBA 504 loan, in many cases small business owners may only need to contribute a minimum of 10% (15% for properties deemed “special use” by the SBA)* of the purchase price or total project costs, thereby preserving liquid assets for future working capital needs. They also benefit from below-market, longer-term fixed interest rates than with most conventional loans. Finally another great benefit 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 also greatly reduces the business owner’s cash outlay when compared with conventional financing. Contact us today to discuss how we can help you.
*SBA Special Use Properties:
- Amusement parks
- Bowling alleys
- Car wash properties
- Cold storage facilities where 50% of total SF is equipped for refrigeration
- Farms, including dairy facilities
- Funeral homes with crematoriums
- Gas stations
- Golf courses