SBA 504 Loan
The 504 program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings.* A 504 loan is created with three main elements:
• One loan for 50% of project cost, secured with a senior lien from the
private sector
• One loan for up to 40% of project cost, secured with both a junior lien and
a 100% SBA-guaranteed debenture
• A 10% equity contribution from the business itself
SBA 504 loans are perfect for fixed asset projects:
• Purchasing land and improvements
• Construction of new facilities
• Modernizing, renovating or converting existing facilities
• Purchasing long-term machinery and equipment
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