The SBA 504 program is a value-added product for both the borrowing small business and the participating lending institution. The same fundamental benefits for both the borrower and lender have remained constant since the inception of the program.
For Small Business Borrowers:
1) Up to 90% financing - allows the borrower to use more of its own cash to fund growth and working capital
2) Below market rates - 504 rates remain below the current prime rate
3) Fixed rates and longer repayment terms - provides for stable, predictable occupancy cost
For Participating Lenders:
1) First lien position with a 50% equity position – mitigates portfolio risk
2) Reduce exposure to any one borrower – larger transactions with 504 participation
3) Mitigate industry-related risks – concentrations, broader markets, etc.
If you are looking to enhance your owner occupied, commercial real estate or equipment deals, why not give SBA a try?
Give us a call today! (337)-234-2977
