For Lenders

Healthy businesses, which plan to invest in equipment or real estate for their own use, could qualify for attractive financing using the 504 loan program - in a way that can help you meet policy and regulatory guidelines. The key advantages to the 504 program for your financial institution:

Elimination of Fees
As a result of the ARRA, several fees associated with the SBA 504 program have been eliminated. Traditionally, there is a 1.5% fee charged to the borrower by the certified development company processing the loan. as well as a .5% fee charged to the third party lender which is in turn passed along to the borrower. Both fees have been eliminated for an unspecified length of time. Funds were set aside to allow for the fees to remain in suspension until the funds are exhausted.

Maximum Funding Amounts (SBA Portion)
* $1,500,000
* $2,000,000 if you meet a public policy goal
* $4,000,000 for manufacturing and projects meeting one of the energy public policy goal

Low Down Payment
504 loans require between 10% and 20% down. Small businesses receive up to 90% financing allowing them to preserve working capital for business expansion.

Low Fixed Rate
504 loans utilize fixed rates that are usually 1% to 2% less than conventional financing. No calls, no balloons.

Low Monthly Payments
Small businesses pay low monthly loan payments by utilizing 15 to 30-year amortization schedules from a first mortgage lender.