SBA 504 Loans

SBA 504 LoansPRC Small Business Loans2019-12-03T22:00:37+00:00

Why choose a 504 loan?

An SBA 504 loan can finance commercial real estate for owner-occupied properties. These loans require only a 10 percent down payment by the small business owner and funding amounts range from $1 million to $30 million.

SBA 504 Loan Details

Loan Size	$1 million to over $30 million
Eligible Business Size	Average net profit after taxes for 2 consecutive years not to exceed $5MM Business net worth not to exceed $15MM
Interest Rate	Fixed Fully amortized through term of loan
Terms and Amortization	1st Mortgage: 25 years fully amortized – 5, 7, 10 yr fixed rate 2nd Mortgage: 20 years fully amortized – real estate loan.
Typical Loan Structure	50% bank loan 40% CDC loan 10% borrower down payment (minimum)
Loan Purpose	Purchase existing building Refinance existing building Land acquisition and ground up construction (includes soft cost development fees) Expansion of existing building Finance building improvements
Loan Requirements	51% owner occupancy required for existing building 60% owner occupancy required for new construction
Collateral	1st lien position Personal guaranties of the principal owners of 20% or more ownership required
Prepayment Penalty	Declining 5-4-3-2-1% (minimum)

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SBA 7a Loans

Purchase, build or renovate real estate from $1MM to $7MM with a term of 25 years, and fixed rates starting as low as 5%

Conventional Loans

Purchase, build or renovate real estate from $1MM to over $500MM+ with a term of up to 10 years, and fixed or variable rates