What's New with SBA 504 Financing?
The U. S. Small Business Administration (SBA) created the 504 loan program in 1980 to provide financing for successful, growing small and medium-sized businesses.
Loan proceeds can be used to purchase, renovate or construct commercial real estate properties, or for the acquisition of equipment that has a life expectancy of 10 years or more.
Benefits of 504
- Low down payment – as little as 10% cash injection required. This enables the business to retain working capital for continued growth and expansion. Single-purpose facilities or start-up businesses require a slightly higher down payment.
- Long term, below market, FIXED rates – SBA 504 loans are fixed for 20 years, fully amortized. View Historical Rate Chart
- No additional collateral required for majority of projects.
- Only 51% occupancy required – For the acquisition of existing properties there is a 51% occupancy requirement; business must occupy 60% for new construction.
- Reduced out of pocket costs – SBA loan fees are typically financed. Please contact us to learn more.
- For more information, please see our SBA 504 FACT SHEETS
What is the role of TMC?
TMC’s professional staff works directly with borrowers, first mortgage lenders, and real estate brokers to tailor financing packages that meet SBA program guidelines and the credit capcaity of each business.
TMC facilitates the entire financing process from beginning to end, making it as seamless as possible for everyone involved.
View the TMC Glossary of SBA Financing terms.
Please contact us to learn more.