The time to grow your business is now!
As of this week, the SBA 504 10-year and 20-year loan rates have reached an all time record low! Since being founded in late 1986, the SBA-504 program has provided over $50 billion dollars in capital for growing small businesses and over 2 million jobs for their local economies. [source]
If buying your own building is desirable, one of the SBA’s flagship programs called the SBA-504 loan can help you achieve your goal. Most 504-financed purchases are for office, retail or industrial buildings. SBA-504, fixed-rate loans finance 40 percent of the total purchase. A bank or other lender provides 50 percent and the business owner contributes a 10 percent down payment. For example, if the building purchase price is $500,000, the following would be the loan structure:
Bank 1st mortgage – $250,000
CDC 2nd trust deed – $200,000
Borrower downpayment – $50,000
The best news of all is that the SBA-504 rates are FIXED for the length of the loan. So that means, you can reap the benefits of this low rate over and over with a lower monthly payment.