Thursday, September 12, 2013

SBA 504 Agribusiness Loans

How the 504 Helps Agribusiness...

Agribusiness owners looking to expand often find the down-payment requirements of conventional financing dips too far into their working capital.  The 504 provides a financing solution.  Check out these benefits of using the 504:

  • Low down payment (15% in most cases) - helps conserve valuable working capital
  • Low, fixed interest rate on 504 - avoids future rate fluctuations
  • Long loan term - brings debt service in line with cash flow generated by the business
  • Loans are advanced based upon project costs and not appraised value
  • Keeps other assets from becoming encumbered
  • Option to refinance debt related to fixed assets when combined with a new expansion project

Growth Corp's 504 Loan Program can be used to finance a range of agribusiness projects, such as:
  •  Grain Elevators
  • Irrigation Equipment
  • Warehousing and processing facilities
  • Operations and fertilizer plants
  • Livestock feed lots
  • Dairy farm start-up and expansion
  • Livestock sales arenas
  • Hog farrow-to-finish facilities

Essentially, the 504 is used by agribusiness owners to finance real estate and/or equipment for specific value-added uses.

Read more and download a free white paper at http://www.growthcorp.com/Portals/0/AgLoanInfo.pdf

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