An overwhelming majority of small business owners who get an SBA loan to buy their own building are so satisfied that they’d recommend the financing to another entrepreneur at the drop of a hat, according to research conducted by CDC Small Business Finance (CDC).
After surveying 100 small business owners who closed SBA 504 loans in the last year, CDC reported that 94% of the responding entrepreneurs gave the loan experience favorable ratings.
SBA 504 loans are tailor-made for commercial real estate purchases, offering a low fixed rate for 20-years and a 10% down-payment. These loans are offered by certified development companies that typically partner with traditional banks.
“The myth about SBA loans is that they take a long time, but when you work with a financing company that keeps you informed, the process is smooth and meets expectations,” said Kurt Chilcott, president and CEO of CDC Small Business Finance.