SBA 504 Loan
- The US Small Business Administration (SBA) is a federal agency with the main purpose of helping small businesses get the funds they need for real estate or equipment.
- Enjoy lower down payments and long repayment terms
- Preserve working capital for operational expenses and apply today!
Take advantage of an 85% approval rate - act now!
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What are SBA 504 Loans?
The U.S. Small Business Administration 504 Certified Development Company Loan program conserves our working capital by requiring only a 10 percent borrower contribution.* If you do not qualify for conventional financing, the SBA-backed 504 loan may be right for you. Certified Development Company (CDC) are nonprofit corporations that promote economic development within their communities through 504 loans. The SBA authorizes CDCs to provide financing to small businesses with the help of third-party lenders (typically banks)
This loan program provides financing for businesses to purchase real estate, major fixed assets, and equipment, or to make improvements like landscaping. This program can also provide funding for renovation.
504 Loan Program Details
10 Year US Treasury Rate +
10, 20, or 25 Years
30 to 60 Days
Up to $5M
How can I use an SBA 504 loan?
A Small Business 504 can be used for many things for example:
- Purchase existing building
- Land acquisition and ground-up construction (can include soft cost development fees)
- Expansion of existing building
- Finance building improvements
- Purchase equipment
- Job creation
- Purchase or renovate capital assets (land, buildings)
- Refinancing permitted
- New Construction
- Leasehold Improvements
SBA 504 Loan Program Eligibility Requirements
Below you will find some of the Eligibility requirements for small businesses:
- A good credit score – preferably above 660.
- A history free from recent bankruptcies, foreclosures, or tax liens.
- Having been in business for at least two years.
- Be a nonprofit corporation in good standing
- Have a board of directors with at least nine voting directors (additional board of directors requirements are listed in 13 CFR 120.823)
- Have full-time professional management and a full-time professional staff
- Meet a minimum level of lending activity
Who is eligible for SBA 504 Loan?
While the bulk of small businesses are eligible for financial assistance from the SBA, a small amount aren’t. To be eligible for a 504 Loan, your business must: Operate as a for-profit company in the United States or its possessions. Have a tangible net worth of less than $15 million. Have an average net income of less than $5 million after federal income taxes for the two years preceding your application.
What are the SBA 504 Loan Interest Rates and Terms?
Interest rates are negotiated between the borrower and the lender but are subject to SBA maximums, which are pegged to the prime rate, the LIBOR rate, or an optional peg rate. Interest rates may be fixed or variable according to the Small business administration and its 504 loan program guidelines.
- Pegged to an increment above the current market rate for 5-year and 10-year U.S. Treasury issuesÂ
- Totals approximately 3 % of the debt, a rate may be financed with the loan
What are the fees on SBA 504 Loans?
Interest rates on 504 Loans are directly connected with the current market rate for 5-year and 10-year the U.S. Treasury issues. Loan maturities can vary and terms of 10 and 20 years are available. Fees may also be financed with the loan.
SBA 504 Pros vs Cons
PROS
Lower down payments and longer repayment terms
Payment Stability – Fixed low interest rate on 504
Includes moving and installation costs
Up to $5 million for SBA portion of the loan, no limit on overall project size
CONS
Lengthy and complex application process
Stringent eligibility criteria for approval
Is an SBA 504 Loan a Good Choice?
The benefits of an SBA 504 Loan to small businesses
- Low down payment usually only requires 10% of the loan value down.
- Low, fixed interest rate on 504
- Long loan term
- Includes moving and installation costs
- Payment stability
- No future balloon payments
- Up to $5 million for SBA portion of loan, no limit on overall project size
- Keep your lender or allow us to match you with one of our lending partners
Open the Door to Financial Freedom: Access a Business Line of Credit.
If approved how long does it take to get SBA 504 loans?
The time to turn around an SBA 504 loan is typically between 60-75 days there may be special cases where businesses may experience longer or shorter times.
What equipment can be purchased with an SBA 504 loan?
Now, below are just a few examples of equipment you might buy within industries that do qualify for an SBA loan:
- Purchase of One or More Existing Building
- Construction of One or More New Building
- Land Purchase or site improvements
- Commercial Printers
- Food Processing Machinery
- Highly Calibrated Machines
- Equipment that generates renewable energy
Apply for a SBA 504 Loan Now.
- Finance fixed assets like real estate or equipment
- Benefit from SBA's guarantee, reducing lender risk
- Take advantage of fixed interest rates for stability
Stay ahead of the curve - get access today!
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Documents You'll Need to Apply
Driver’s License
Voided Business Check
Business Bank Statements (Last 4 Months)
Credit Score
Credit Application
Real Estate / Collateral Information
You may also be requested to provide the following for larger dollar amounts over $100K:
Balance Sheets
Profit & Loss Statements
2 Years Business Tax Returns
2 Years Personal Tax Returns
Equipment List (if securing equipment)
Unlock the potential of your business with Upwise Capital’s SBA 504 loan program. Our experienced funding experts are ready to guide you through the process and provide tailored lending solutions to meet your unique needs. With competitive interest rates, low down payments, and long repayment terms, an SBA 504 loan can help you acquire or expand your facilities, purchase equipment, and create jobs.
Don’t wait to take your business to the next level. Apply now by filling out our simple Funding Application Form or call us directly at 775-5-UPWISE (879473) to speak with a knowledgeable representative. Get approved for an SBA 504 loan within 24 hours and start building your success story today.
Why Upwise for an SBA 504 Loan
Quick & easy application
Our simple 15-minute application gets you on your way to funding quickly. Most applicants receive a fast decision within hours of applying. Then just choose your loan terms and you could have funds deposited into your account as soon as 24 hours.
Ensure you make the wise choice
Every Upwise applicant gets a dedicated funding advisor who takes the time to understand your business and it's unique needs. We are here for your support throughout the entire funding process.
Access multiple financing options
Upwise has an extensive product suite and a network of 100+ lenders. This means you're more likely to find the best match for your funding needs.
