Construction season is upon us! Now is the time to get your clients’ permanent financing in order. An SBA 504 loan is able to finance 30-40% of the total cost to construct a new building or remodel an existing building.
Nailing down an SBA 504 loan soon for your clients’ business construction project is key…
- As a lender, you’ll be assured the SBA 504 loan is approved for take-out financing before construction begins.
- Your bank will reduce their risk by enjoying a first lien while lending only 50% of value.
- Your small business clients will enjoy a long term, below market, fixed rate on the SBA 504 loan portion.
- Small business owners have the opportunity to complete their project with only 10-20% equity injection, which can be cash, land, or borrower equity.
Contact FDDC for more information and to start the approval process.