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The Top 3 Reasons Why People Choose SBA 504 Loans

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As a national non-bank direct lender we specialize in helping small to midsize businesses finance their growth and create wealth through our SBA 504, SBA 7(a) and low LTV conventional loan programs.

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The top three reasons why somebody chooses an SBA 504 loan?

#1: The Down Payment.

It’s oftentimes half to a third the down payment of an ordinary conventional bank loan. This puts less of a burden on the borrowing business and gives it more leverage with its capital.

#2: The Amortization.

Oftentimes, we’ll do a 25-year amortization on the first lien loan and a 20-year amortization on the second lien loan–that compares to a 15-20 year amortization with a conventional bank loan.

#3: The Below-Market Long-Term Fixed Interest Rate of The Second Lien Loan.

This is what I often call the best-kept secret in commercial financing. A lower interest rate with an SBA 504 loan allows for more focus to be set on putting the money to good use, not paying it back as quickly as possible.