Benefits

SBA 504 benefits for small businesses.

We have small business loans that can give your business the advantage it needs to go in the right direction.

Benefits of SBA 504

Borrower benefits

• Long-term, fixed-rate financing
• 10-20-25 year fixed rate terms 
• Short-term assets remain lien-free to support other financing needs

Lender benefits

• Mitigate legal lending limit concerns
• Excellent loan-to-value – typically 50 percent or less
• Pricing flexibility on first mortgage portion
• First mortgage portion may be sold on secondary market
• Qualifies as Community Reinvestment Act credit

What’s the difference between SBA 504 and conventional bank loans?

Differences for borrowers.

Long-Term Financing
SBA 504 loans give you 10-20-25-year full-term, fixed-rate financing for lower, more predictable monthly payments. 

Lower Down Payment
With the SBA 504 program, a borrower can put as little as 10 to 20 percent down.

Differences for lenders.

Credit Risk Mitigation
SBA 504 loans allow lenders to have senior lien position and a loan-to-value ratio of around 50 percent, which lowers risk.

Management of Lending Limits
Overall lending limits can be well-managed by banks with SBA 504 loans. Banks can handle larger projects while all banks can limit their exposure.

Increase in Customers
Lenders can strengthen core earnings from new customers with SBA 504 loans, as well as gain several new long-term banking relationships.

Are you eligible for an SBA 504 loan?
Check your initial SBA loan eligibility right here.

Learn how our step-by-step lending process can help you get the small business funding you need.