Have you heard about the SBA Section 504 loan program? Though not as common as SBA 7(a) loans, 504 financing offers small businesses looking to purchase real estate or other fixed assets a number of advantages over traditional business loans.
The U.S. Small Business Administration (SBA) provides backing for loans to small businesses that may not qualify for traditional business financing. The SBA helps small businesses start up, expand, or recover. It is also helping many small businesses to stay afloat now more than ever.
The 504 financing program differs from other loan programs because it was designed to drive economic development by creating jobs. Borrowers who are looking to expand their operations by purchasing real estate, starting new construction, or buying machinery and equipment will get the benefits of long-term, fixed-rate financing while providing new employment opportunities for the communities in which they operate. Who knew that simply taking out a loan could make you a local hero?
Let’s compare the SBA’s two main lending programs: the SBA 7(a) vs. the SBA 504.
The bottom line is if your business is looking for funding to develop land; buy, renovate or construct buildings; or to purchase new equipment and machinery, the 504 loan will likely be your best option. Qualified applicants receive 90% financing and may get a better rate and lower fees. Plus, you’d get the chance to work with us!
And there’s no need to fear the application process or slow turnaround times - we’ll help you every step of the way and make it as quick and easy as possible.
Not sure if the 504 program is right for you? Learn more about our SBA 504 Loan Program or contact us. Our team of friendly, helpful experts would love to help you grow your business.
Sunshine State Economic Development Corporation (SEDCO) is a not-for-profit certified development corporation (CDC) licensed by the U.S. Small Business Administration to offer the SBA 504 Loan Program throughout the state of Florida. SEDCO can provide your expanding small business with alternative financial resources, sound financial advice, and business acumen. Helping small business succeed is our business. For more information, visit our website or contact us.