The 4-Way Win
THE SBA 504 LOAN
A small business real estate loan
The SBA 504 loan program provides an outstanding opportunity for the healthy, small business which is ready to expand and grow. With this loan, everybody involved wins.
Winner No. 1 - The small business.
The low down payment and low interest rates allow the small business borrower to retain more cash for expansion. When the borrower becomes the owner of real property, rent costs, in effect, are frozen. There is also the potential for added tax benefits.
Winner No. 2 - The community.
By encouraging business expansion, the Certified Development Company offers a vehicle through which employment is generated. The resulting increased business volume, with its related employment needs, means greater stimulation for the local economy.
Winner No. 3 - The lending institution.
This loan provides another alternative through which lenders can serve their small business customers. The SBA 504 program makes it easier for a financial institution to lend a substantial amount as part of an attractive, well-secured, financial package with benefits to both borrowers and lenders. Additionally, SBA 504 participation provides an opportunity to increase involvement in community reinvestment programs.
Winner No. 4 - The real estate market.
The 504 loan is a boost for the industrial and commercial real estate market because it provides more attractive financing for buyers who might not otherwise qualify.