The federal government created the SBA 504 loan program to help small businesses, including startups and existing businesses in Ohio and Kentucky, with the financing they need to purchase real estate and/or equipment. The SBA 504 loan offers several advantages for both borrowers and lenders, including low down payments, fixed interest rates, and long-term financing for up to 25 years. Let’s look at three of the most significant advantages of the SBA 504 loan program in action.
What is an SBA 504 Loan
The SBA 504 loan is a low down payment, long-term financing option that provides fixed-rate financing. A business must meet certain criteria to qualify for the loan, and our loan officers are here to help you through that process. The purpose of this loan is to help with the purchase of land, commercial real estate, or equipment. This loan can be used to expand your business in Ohio and Kentucky. When looking for loans, it is important to know what kind of options are available and what they entail.
How does it work?
The SBA 504 loan is a long-term financing tool that can be used to purchase land, commercial real estate, and equipment. With the use of the 504, you can finance up to $5 million for a period of up to 25 years with fixed-rate financing. The loan is available in all 50 states, including Ohio and Kentucky.
The SBA 504 loan program is a great choice for businesses that need capital to grow, but don’t qualify for a traditional bank loan. With an SBA 504 loan, you can get up to $5 million in financing to purchase or improve property or equipment, with repayment terms of up to 25 years.
If you are interested in applying for this type of loan, please contact us so we can provide more information about the application process as well as what we can do to help find a lender if you don’t have one. A fixed-rate commercial real estate loan could be just what you need if you are looking for financing to buy property or expand your business.
Why Choose It?
If you are looking to expand your business in either Ohio or Kentucky, there are many financing tools to consider. One option is the SBA 504 loan which offers a low-interest rate and terms that can be customized to suit your needs. The main benefit of this program is that it has a long repayment term with a fixed interest rate, which provides more flexibility for your business’s cash flow. You’ll be able to make payments for up to 25 years at a fixed interest rate. The SBA 504 loan program is a great option for businesses that want to expand their operations, but don’t have enough cash on hand to do so.
The SBA 504 loan program is a great option for businesses in a variety of situations. The program is especially well-suited to businesses that:
-Have been in operation for at least two years and are profitable
-Are seeking funding to purchase real estate or refinance existing real estate loans
-Have between $250,000 and $5 million in collateral value
To see if the 504 may be right for your company, take advantage of our free SBA 504 calculator. The calculator will provide you with estimations of how much money could be available for the purchase of commercial real estate or equipment. The decision to finance any property or equipment should only be made after careful consideration of all aspects including possible tax benefits. When considering the use of this type of financing tool, we encourage you to discuss your options with a qualified lender in order to make an educated decision before committing.
In conclusion, the SBA 504 program in Ohio and Kentucky can provide long-term, fixed-rate financing for small business owners who want to purchase commercial real estate or heavy machinery/equipment with down payments as low as 10%. For more information on how we can help you utilize this program and other financial tools available today, please contact us at 513.631.8292.