Benefits of 504 Loan

504 LOAN

What are the Benefits?

The 504 loan program offers a low down payment (typically 10%), finances closing costs, and provides a long-term fixed interest rate (up to 25 years). Paired with the variety of financing options available on the first mortgage, the program can help small businesses build equity in the business over time.



BUILD EQUITY IN YOUR BUSINESS


The 504 loan program helps build equity in your business as you make regular payments towards the principal balance on both the financial institution debt and the SBA 504 loan. 




LOW DOWN PAYMENT


Typically just 10%, allowing you to preserve working capital to invest in your growing business. 




FINANCE LOAN CLOSING COSTS & FEES


You have the option to finance the closing costs and fees associated with the loan, reducing your out-of-pocket expenses.



LONG TERM FIXED RATE – UP TO 25 YEARS


The 504 loan offers a below-market, long-term fixed interest rate. This stability enables you to plan for the future with confidence, knowing your loan terms won’t fluctuate.



VARIETY OF INTEREST RATE OPTIONS FROM FIRST MORTGAGE LENDER


The interest rate on the first mortgage can be even lower than what you’d get with conventional financing due to the reduced risk involved. This means that the overall blended rate you’ll receive with a 504 loan is often lower than what you would get with conventional financing.