An SBA 504 loan not only helps small business owners buy commercial real estate and long-term equipment, but it also encourages economic development and promotes job creation. In fact, 504 loans have helped create over 2 million jobs.1 Here’s everything you need to know to help you apply and qualify for an SBA 504 loan.
A small business loan can help you when the time comes to invest in new business resources. But with so many small business loan options available, you can quickly get overwhelmed. Fortunately, the U.S. Small Business Administration (SBA) is a great resource for entrepreneurs who are on the market for a loan to start and grow their small businesses.
What makes SBA loans so useful? First, the SBA federally backs the loans so they’re less risky to lenders, making it easier for you to get a loan with lower interest rates. Plus, they have different types of SBA loans that all offer low interest rates, low down payments, and long-term financing. That’s a rare treasure worth taking if you can swing it. Note that they do have strict requirements, so you’ll have to wait a long time for funding. However, if you can qualify for an SBA loan, it’s well worth the wait.
Of the many SBA programs, the CDC/SBA 504 loan is one of the most popular—mainly because it offers unique benefits to businesses that qualify. SBA 504 loans are all about fueling the economy—they help business owners purchase land or buildings, improve existing facilities, purchase machinery and equipment, or purchase commercial real estate. Plus, they promote job growth in local communities.
If you’re looking for a small business loan to purchase commercial real estate or heavy equipment, the CDC/SBA 504 loan may be just the ticket.