SBA 504 loan & lending PROGRAM DETAILS
SBA 504 loans are available for owner-occupied Real Estate and can be used to purchase a property, finance ground-up construction or property improvements, and/or purchase heavy machinery and equipment.
Unlike the SBA 7(a) Program, SBA 504 loans are structured as two loans – a 1st position conventional loan and a 2nd position SBA guaranteed loan. The resulting loans offer up to 90% LTV on Real Estate purchase, construction and refinance, and usually carry a lower blended rate then offered by the SBA 7(a).
Common SBA 504 Loans Uses:
- Acquire or refinance owner-occupied real estate
- Finance construction of an owner-occupied commercial building
- Finance property improvements
SBA 504 Program Details:
- Loan amounts up to $15 million
- LTV Up to 90%
- Rates Starting at 4%
- Conventional loan terms 25 years
- SBA CDC loan terms 25 years
- Equipment loan terms 10 years