SBA 504 Loan Benefits

There are a lot of reasons for small business owners to choose the SBA 504 Loan program. Below you will find FDDC’s top five benefits of this type of commercial real estate financing…

  1. Ninety-percent (90%) Loan-to-Cost Financing – FDDC with a partner lender can provide up to 90% financing of the total project cost, which includes the land, construction/renovations, equipment and soft costs. With the savings of only 10% equity required, the small business owner can preserve more capital which they can use to grow their business.
  2. Long-Term, Below Market, Fixed Interest Rates – Variable interest rates don’t make sense when it comes to commercial property financing. The ability to lock in long-term (up to 25 years), below market, fixed interest rates through SBA 504 makes it possible for business owners to save on interest expenses.
  3. Longer Loan Amortizations – Longer loan amortizations on the SBA loan allow for smaller monthly payments, which have less impact on business cash flow.
  4. No Balloon Payments – Balloon payments are often a feature of conventional commercial loans, but SBA 504 loans give business owners more control and more peace of mind.
  5. Specialists Make the Process Easy – To be honest, SBA 504 financing can be complicated. FDDC makes the process easy because this is what we do every day and we do it well. Working with FDDC will make the process simpler for the small business owner.