For businesses seeking to grow, expand and flourish into 2021, the SBA 504 Loan Program is a tremendous option. And despite what some think, the 504 Loan Program is actually designed to help more businesses get funding to help strengthen local economies, create jobs and business better business environments.
We get it. The loan process can be lengthy and thorough. But that’s why we’re here. And in case you’re wondering whether or not it’s worth the effort, consider these three reasons that make the effort worth it:
Reason 1: low/fixed interest rates
The interest rate on an SBA 504 loan will almost always be lower than what you’re likely to get from a traditional lender.
Reason 2: flexible repayment terms
Traditional loans often require stringent, short-term re-payment options, and are sometimes coupled with balloon payments. The 504 Loan enables businesses up to 10 years to repay the purchase of machinery or equipment, and up to 20 or 25 years when purchasing, renovating, or constructing commercial buildings.
Reason 3: low down payments
Traditional/conventional loans often require up to 40% down payments, which places considerable strain on small businesses. The SBA 504 requires only a 10% down payments (in most cases), making it a much more feasible option for more business types
Ready to learn more? Contact BFC today at 1-800-SBA-REAL.