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

• Low Down Payment – Conserves valuable working capital
• Below Market Fixed Rate – avoids future rate fluctuations
• Long Loan Term

504 ADVANTAGES FOR COMMERCIAL LENDERS

• 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