Businesses Believe in SBA 504

“To offer, or to not offer, the 504 – That is the question…”

Before you answer, let’s review the top reasons businesses prefer SBA 504 over SBA 7(a) and Conventional.

Top 3 Reasons Business Owners Prefer SBA 504

Reason #3:  Greater Access to Capital

Higher-risk industries (restaurants, oil & gas), single-purpose real estate properties (car washes, hotels, RV parks, storage, and entertainment complexes), and startup companies are more likely to be approved by lenders in a 1st lien, 50% LTV position.

Reason #2:  90% All-Inclusive Financing

Businesses can invest as low as 10% of the cost of the land and building, construction, and equipment costs.  Title, appraisals, lender fees, interest, and other closing expenses can be financed.  This means less out-of-pocket and more cash available for personnel or inventory without having to pledge rental properties or other assets.

Reason #1:  25-Year Fixed Rate, Term, and Amortization

A locked interest rate for 25 years provides security from fluctuations from Federal Reserve rate increases.  Owners can rely on loan payments that will not increase over the 25-year life of the loan.  Payments amortized longer leave more cash in the business to help cover operating expenses and capital to expand.


Community Business Finance is here to help business owners obtain the financing needed to start or expand their companies.
Let’s get to work on your business dream today!