We understand that timing means everything in a real estate transaction. BFC has a proven, proficient process that meets our mutual objective of closing each real estate transaction quickly and easily.
The SBA-504 loan is specifically designed to help small businesses buy, construct or improve commercial and industrial buildings.
Key Advantages of SBA-504 loan over conventional business loans
- Low down payment – the business owner invests only 10% down, borrowing up to 90% of the total financing need, thus preserving cash for the business.
- Longer repayment terms – SBA repayment periods are longer than conventional bank loans – 20 years fully amortized for real estate loans and 10 years fully amortized for equipment loans. The small business owner’s monthly loan payment is more affordable, improving cash flow.
- Fixed interest rate – below-market
- Projected income consideration – BFC considers projected income of a business in addition to historical cash flows. This is particularly advantageous for growing businesses.
Secondary source of payment less critical – With the SBA-504 loan guarantee, collateral may be less critical in qualifying a borrower for a loan.
To qualify for a SBA-504 loan, a business must:
- Be owner-operated
- Be for-profit
- Be organized as a sole proprietorship, corporation, partnership or limited-liability corporation (LLC)
- Have net worth no greater than $15 million and net profit after taxes below $5 million in the last two operating years
Contact one of our loan experts to find out if your business is eligible.