What is an SBA 504 loan?
The SBA 504 loan program provides long-term, fixed rate financing for the acquisition of major fixed assets, such as real estate or equipment. Borrowing capacity through the SBA 504 program is up to $15 million.
For the purchase of owner-occupied real estate, up to 40% of the project can be funded through a CDC loan, which carries a 25-year fixed rate. Up to 50% of the remaining project can be financed through a conventional first mortgage. The advantage of this program is that it allows borrowers a competitive blended rate for as little as 10% down.
What is a CDC?
CDC stands for Community Development Company, which is a nonprofit entity regulated by the SBA that exists for the purpose of promoting economic development within a particular region of the country. By lending to small business owners, CDC’s help offset credit risk and provide greater access to fixed rate loans from conventional lenders.
Do I have to find a CDC in order to get an SBA 504 loan?
No. That’s where we can help. We have relationships with CDC’s and can help get your SBA 504 loan placed with both a CDC and a conventional first mortgage lender. We will work to get you the best blended rate available.
Interested in an SBA 504 loan?
Our team of experienced lenders is available to talk to you today. Reach out to us to find out how we can help.
Ready to start the process?
Fill out our online form to see if you qualify for a Bank of Edison SBA 504 loan.
The Bank of Edison does not lend in the following states – Arizona, California, Hawaii, Nevada, North Dakota, South Dakota or Vermont