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On Cinco de Mayo …5 Tips to improve your business with SBA-504 financing

May 5, 2014 | Small Business Loans

Top 5 tipsSBA-504 loans are a low-rate financing option that help business owners purchase real estate to support and grow their companies. Buyers work with SBA-Certified Development Companies (such as CDC Small Business Finance) to obtain SBA-504 loans.

  1. Get pre-qualified early – With just a few documents, we can determine within 24 hours if you qualify for 90% fixed-rate SBA-504 financing and how much you qualify for. It’s important to have a pre-qualification letter in your hand before you find a building to have leverage and purchasing power.
  2. Find a great broker – We can help match you with commercial real estate brokers throughout California, Arizona and Nevada who specialize in your industry and geographic area.  A broker will help you negotiate the best possible deal and ensure you are fairly represented.
  3. Identify a building – Your broker will help find a building that meets your business growth goals. The 504 loan provides capital for purchase, renovation, construction and heavy equipment.  These loans require that your business occupy at least 51% of the square footage. Once you execute a purchase agreement, we can move quickly to meet contract deadlines and obtain SBA approval for your loan.
  4. Secure your lenders – Every 504 loan is provided jointly by a CDC (SBA portion) and another lender, often a bank. We partner with a wide variety of lenders who offer SBA-504 loans. We can work with your current bank or identify a lender that offers terms in concert with your current financial situation and financial objectives.
  5. Enjoy the benefits of owning your building – Owning the building your business operates in helps ensure a successful future for your company. You locked in (and frequently lowered) your occupancy costs and protect yourself from rent increases.  You enjoy more working capital to grow your business, significant tax advantages and potential long-term retirement income.

Contact us today if you are looking to support and grow your business in California, Arizona or Nevada.  Or use this link to find an SBA-Certified Development Company elsewhere in the U.S. – SBA-Certified Development U.S. Directory Search.

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