In general, to qualify as an eligible borrower for an SBA 504 loan, you must meet the following requirements:
These are just some of the eligible uses of an SBA 504 loan:
These are just some of the eligible uses of an SBA 7(a) loan:
Fountainhead takes pride in providing the highest level of customer service in the business and often times can provide you with an answer as to how we can help you within 24 hours. We have a streamlined application process and only requires you to provide us with eight (8) basic documents in order to determine how our team of specialists can assist you. Please download the Pre-Approval checklist and application today and let’s get started!
Traditional Lenders will normally loan only 75% to 80% of the purchase price or the appraised value, whichever is less. This means you will be required to put anywhere from 20% to 25% equity into the deal, an amount that often times is not the best use of your capital. SBA 504 loans often times require only 10% equity with financing up to 90% of all eligible costs, including soft costs and closing costs. Expect 10-20% equity on an SBA 7(a) loan with the requirement of some level of collateral. SBA 504 and 7(a) loans are often times superior to conventional commercial loans as to the length of loans, competitive interest rates, balloon payments required, assumption of the loans, etc.