What is an SBA 504 loan?
Small Business Administration (SBA) loans are typically more attractive to small business owners compared to other conventional financing options due to their low interest rates and long repayment terms.
An SBA 504 loan or 504 business loan offers long-term financing of up to 25 years for major fixed assets such as real estate and machinery. Projects typically qualify for up to $5 million under the SBA 504 loan program but eligible energy-efficient or manufacturing projects can qualify for more than one loan of up to $5.5 million per project.
Low, below-market interest rates are fixed for the entire duration of the loan. Loans are payable in terms of 10, 20, and 25 years. As for the equity, a low down payment (usually 10%) is required