More small businesses will soon be able to qualify for SBA loans to buy commercial/industrial buildings, according to CDC Small Business Finance.
On April 21, the Small Business Administration (SBA) will eliminate provisions that prevented small business owners with a high-net worth to purchase commercial real estate with a SBA-504 loan. The 504 loan can also help business owners buy and install heavy machinery and equipment.
“These new changes will allow more small business entrepreneurs to take advantage of SBA-504 financing to buy or construct their facilities,” said Kurt Chilcott, president and CEO of CDC Small Business Finance, the largest SBA-504 lender in the U.S. “Helping more small businesses grow will help create more jobs and, as a result, improve the economy.”
SBA-504 loans appeal to small business owners who are tired of paying rent and want to build equity for themselves. SBA-504 loans allow entrepreneurs to access low-fixed-rate, 20-year financing of over $20 million with a minimal down-payment (10%). Rates have been averaging 5.4% over the last nine months.