If you are a business owner looking to purchase a building or large piece of equipment in Dayton, OH, it’s essential to find a reliable, affordable loan. The SBA 504 program is an effective way for businesses to benefit from a low, fixed interest rate with a loan term of up to 25 years. Plus, you can put as little as 10% down.
The SBA 504 program is designed to make fixed asset purchases affordable and accessible to businesses of different sizes, so they can grow and better serve their communities. If you’re curious how the SBA 504 program works, let’s dive in.
The SBA 504 loan program gives businesses in Dayton long-term, fixed-rate financing up to $5.5 million for major fixed assets, notably owner-occupied real estate and large equipment. In some cases, this program can be used for refinancing debt accrued for these types of purchases.
Part of what makes this program unique is the partnership between the bank and the certified development company (CDC) like Alloy. The bank funds 50% of the total cost, the CDC funds up to 40%, and the business owner makes a 10% down payment on the project.
Let’s say you’re taking out an SBA 504 loan for a $2 million project. The funding would look like this:
The details of an SBA 504 loan include:
The SBA 504 loan can be used by businesses across various industries. You can use this program for:
If you are a business owner in Dayton looking to fund a commercial real estate project or fixed asset purchase, you may be eligible for the SBA 504 loan program. The basic requirements for this program include:
OR you must meet the SBA size standards for your industry.
To see if you qualify, reach out to us and we can help you with the application process. The professional lenders at Alloy can help you navigate the application process and ensure you’re thoroughly prepared. The timeline for receiving approval depends on various factors, including the type of loan request and how prepared you are. Commercial real estate applications can take 60-90 days (or longer) if construction is involved.
Dayton, Ohio, is a city that holds a special place in aviation history as the birthplace of flight. Today, it continues to soar with innovation and offers a diverse array of cultural attractions, including the National Museum of the United States Air Force. This welcoming city on the banks of the Great Miami River is known for its friendly atmosphere and a growing arts and food scene.
If you live in Dayton, OH and are interested in the SBA 504 program, Alloy is here to help. Alloy Development Co. has established itself as a leading force in the regional economic development landscape. As the leading CDC in the states of Ohio and Kentucky, our experience and impact speak for themselves. With a dedicated team of professionals, we are here to help your small business access capital to facilitate growth.
Whether you are curious about how an SBA 504 Loan can help your business or want to begin obtaining funds, let us serve as your trusted advisor. Contact us today to learn more.
Yes, refinancing is an option available under the SBA 504 Loan Program. According to the guidelines provided by the Small Business Administration, eligible small businesses can use the proceeds of an SBA 504 loan to refinance their existing commercial mortgage debts in certain cases. This option can be incredibly beneficial for business owners looking to lower their interest rates or extend their repayment terms, thus easing their financial burden and enhancing cash flow.
If you answer yes to any of the below questions, the SBA 504 refinance program may be a good solution to fit your needs:
Or give one of our expert loan officers a call at 513-631-8292 for more info.