Given the recent increases in interest rates, what would it mean for your business if you locked in a low, fixed interest rate now? The 504 Loan Program is one of the best financing solutions for business owners in these uncertain times. Here's why:
Low, Fixed Interest Rates
With the 504, borrowers take advantage of a low interest rate, which is fixed for twenty years (or ten years for equipment). In addition, borrowers typically receive a 90% advance, which preserves their working capital for the day-to-day operation of their business.
Predictable Monthly Payments
Borrowers lock in a low fixed interest rate, which gives them predictable payments and allows them to easily forecast for future years. In a nutshell, borrowers are not affected by inflationary pressures and interest rate increases.
Protection from Balloon Payments
With the 504, borrowers do not have to concern themselves with saving the large amount of cash necessary for a balloon payment. And, no balloon payment also means there is no need to refinance in three to five years. This eliminates the need for another appraisal and the worry about a possible deterioration in property values.
Allows Borrowers to Make Improvements on their Property
Property improvements can be included with 504 financing, allowing borrowers to preserve their working capital.
The Program Can Be Used Multiple Times
With high loan limits (up to $5.5 million for the SBA 504 portion alone), borrowers can use the 504 multiple times as long as the total 504 portion stays below the maximum lending limits. This is a great feature for borrowers buying a building and equipment, or a retailer opening multiple stores.
Don't gamble with the future...plan ahead with the 504.
Growth Corp’s 504 Loan Program helps provide businesses with better access to money for expansion than would otherwise be available through conventional financing. The 504 Loan Program is available to most businesses for the purchase, construction, or expansion/renovation of buildings and/or the purchase of equipment. We hope our blog will be a helpful tool for gaining information on small business financing. If you need more help, please contact our office at 877-BEST-504.
Monday, August 26, 2013
Friday, August 16, 2013
Wondering what your estimated monthly payment would be with a 504 loan?
Use our calculator to determine your estimated monthly payment through Growth Corp.
Just click this link to go to the calculator: http://growthcorp.com/Resources/LoanCalculator.aspx
How to Identify Potential 504 Candidates
As a commercial lender, you know that a conventional loan is not always the answer to your business client’s expansion needs. As an alternative, Growth Corp offers a financing solution through the U.S. Small Business Administration’s (SBA) 504 Loan Program. The 504 Loan Program offers fixed rates for capital expenditures and can finance up to forty percent of a project’s fixed assets (up to a maximum of $5 million and, in some cases, $5.5 million). Healthy businesses may qualify for the 504 Loan Program if their expansion plans call for the purchase and use of real estate and/or equipment.
504 ADVANTAGES FOR BORROWERS
Growth Corp can help businesses become more competitive in the marketplace by financing economic growth through investments. To fund the 504 portion of the loan, Growth Corp issues debentures that are fully guaranteed by SBA and sold in the private bond market. Growth Corp works with you and the borrower to make the application process as easy as possible. If your client meets the prequalification requirements, the staff at Growth Corp will prepare all the necessary paperwork to be submitted to SBA for application approval.
To find out more about the 504 Loan Program, or for more specific project questions, please contact our office at any time: 877-BEST-504
504 ADVANTAGES FOR BORROWERS
- Low Down Payment – Conserves valuable working capital
- Below Market Fixed Rate – avoids future rate fluctuations
- Long Loan Term
- Reduced Risk with 50% LTV Ratio
- Fixed or Variable Rate Option on Bank Loan
- Expanded Customer Base
- Meets Economic Development and Community
Growth Corp can help businesses become more competitive in the marketplace by financing economic growth through investments. To fund the 504 portion of the loan, Growth Corp issues debentures that are fully guaranteed by SBA and sold in the private bond market. Growth Corp works with you and the borrower to make the application process as easy as possible. If your client meets the prequalification requirements, the staff at Growth Corp will prepare all the necessary paperwork to be submitted to SBA for application approval.
To find out more about the 504 Loan Program, or for more specific project questions, please contact our office at any time: 877-BEST-504
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