Why an SBA 504 Loan?
The SBA 504 loan program allows you to offer your small business clients loans
at Fortune
500 interest rates and terms. This powerful financing tool is the most effective
way to help
your clients grow and offers many advantages over conventional financing.
Low Down Payment
504 loans require between 10% and 20% down. Small businesses receive up to 90%
financing allowing them to preserve working capital for business expansion.
Low Fixed Rate
504 loans utilize fixed rates that are usually one to two percent less than
conventional
financing. No calls, no balloons.
Low Monthly Payments
Small businesses pay low monthly loan payments by utilizing 15- to 30-year amortization
schedules from a first mortgage lender.
How is an SBA
504 Project Structured?
Midwest Small Business Finance provides up to 40% of the total project cost
with an
affordable, fully amortized fixed-rate loan. The participating lender normally
finances 50%
of the cost. The borrower will typically contribute as little as 10% of the
total project cost.
