SBA 504 Loans for Beauty Salons
Across the U.S., beauty salons continue to see increasing demand. With almost 2% growth in the last three years and an expected $44 billion in revenue in 2018 alone, these businesses can be quite profitable. However, beauty salon owners often face challenges when finding funding to expand their busi
SBA 504 Loans Can Help Beauty Salons Expand
Across the U.S., beauty salons continue to see increasing demand. With almost 2% growth in the last three years and an expected $44 billion in revenue in 2018 alone, these businesses can be quite profitable. However, beauty salon owners often face challenges when finding funding to expand their business.
If you’re looking for financing to grow your beauty salon, an SBA 504 loan could be a fantastic choice. These loans can allow you to purchase real estate, renovate buildings, or even construct a new building completely. Perhaps more importantly, SBA 504 loans can be used to purchase your equipment. The cost for hair dryers, chairs, workstations, wash stations and other equipment can easily rise to hundreds of thousands of dollars. Fortunately, SBA 504 loans offer up to $5 million in financing to offset those costs.
SBA 504 Loan Alternatives for Beauty Salons
While SBA 504 loans have some incredible benefits, you can only use the funds for certain, approved purposes. For instance, you cannot lease equipment with 504 loan funds, nor can you use this money for working capital. There are plenty of other SBA loans that can serve those needs, though. For example, the SBA 7(a) loan program offers up to $5 million of financing which can be used for working capital. And, the SBA express loan, a variant of the 7(a) loan that can be approved faster and with less paperwork, can offer up to $350,000 in financing for eligible borrowers.
We’re here to help you get the commercial financing you need. Simply fill out the form below for a risk-free consultation and a free SBA loan quote!
Related Questions
What are the eligibility requirements for an SBA 504 loan for a beauty salon?
The eligibility requirements for an SBA 504 loan for a beauty salon are as follows:
- The business must be a for-profit, operating in the United States
- The business must occupy at least 51% of the project property
- The business must have a tangible net worth of less than $15 million and an average net income of less than $5 million after taxes for the past two years
- The business must be able to demonstrate the ability to repay the loan
For more information, please refer to the SBA's Eligibility Requirements for the 504 Loan Program.
What are the benefits of an SBA 504 loan for a beauty salon?
The SBA 504 loan program offers up to $5 million in financing for beauty salons to purchase real estate, renovate buildings, construct a new building, and purchase equipment. This loan program can be a great choice for beauty salons looking to expand their business.
For more information, please see the following sources:
What are the steps to apply for an SBA 504 loan for a beauty salon?
The first step to applying for an SBA 504 loan for a beauty salon is to fill out the form on the SBA 504 Loans website for a risk-free consultation and a free SBA loan quote. After that, you will need to provide the necessary documents to the lender, such as financial statements, tax returns, and a business plan. The lender will then review the documents and determine if you are eligible for the loan. If you are approved, the lender will provide you with the loan terms and conditions. You will then need to sign the loan agreement and provide any additional documents that may be required. Once the loan is approved, the funds will be disbursed to you and you can begin using the funds for your beauty salon.
What are the repayment terms for an SBA 504 loan for a beauty salon?
The repayment terms for an SBA 504 loan for a beauty salon depend on the loan amount and the term of the loan. Generally, the loan term is 10 or 20 years, and the interest rate is fixed for the life of the loan. The maximum loan amount is $5 million, and the maximum repayment term is 25 years. The SBA 504 loan also requires a 10% down payment from the borrower. For more information, please visit SBA 504 Loans for Beauty Salons.
What are the interest rates for an SBA 504 loan for a beauty salon?
The interest rate for an SBA 504 loan for a beauty salon is typically fixed and based on the market rate for 5- and 10-year U.S. Treasury issues. The current rate for a 5-year loan is 5.18%, and the current rate for a 10-year loan is 5.38%.
For more information, please visit https://www.sba.gov/funding-programs/loans/sba-504-loan-program.