SBA 504 Loans for Car Dealerships
Thinking about building a new car dealership? Now is a great time to get into this segment of the auto industry. Up to 3.9% growth is expected by the end of 2018, with total revenue for the year approaching $100 billion. Employment is also expected to rise. Funding a new dealership, whether you’re t
How Can Car Dealerships Use SBA 504 Loans?
Thinking about building a new car dealership? Now is a great time to get into this segment of the auto industry. Up to 3.9% growth is expected by the end of 2018, with total revenue for the year approaching $100 billion. Employment is also expected to rise. Funding a new dealership, whether you’re thinking about a new car dealer or a used car dealership, can be tricky, though. Fortunately, however, SBA 504 loan can help.
Car Dealerships Can Utilize SBA 504 Loans for Land Improvement, Heavy Equipment, and Other Purposes
If you own a car dealership, you can use an SBA 504 loan for a variety of purposes. In particular, you can use the money to purchase the land on which the dealership will sit, which will be one of your most significant expenses. You can use the funds for land improvement, such as paving the area, as well as the construction of the dealership showroom, the service center, detailing center, and more. Finally, you can make use of the funds to purchase the equipment you’ll need, such as vehicle lifts, outdoor vehicle displays, and more. However, it’s important to realize that you cannot use SBA 504 loans to purchase inventory—i.e. the vehicles you will actually sell to consumers.
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What are the eligibility requirements for SBA 504 loans for car dealerships?
What are the benefits of SBA 504 loans for car dealerships?
SBA 504 loans offer car dealerships a variety of benefits. These include the ability to purchase land, improve land, and purchase equipment such as vehicle lifts and outdoor vehicle displays. Additionally, SBA 504 loans offer competitive interest rates and long repayment terms, making them an attractive option for car dealerships.
For more information on SBA 504 loans, please visit https://sba504.loans/sba-504-blog/what-is-the-sba-504-loan.
What are the maximum loan amounts for SBA 504 loans for car dealerships?
What are the interest rates for SBA 504 loans for car dealerships?
The SBA 504 loan typically offers lower interest rates than the SBA 7(a) loan. Interest rates for the SBA 504 loan are typically fixed for the life of the loan and range from 4.5% to 5.5%, depending on the size of the loan and the term of the loan.
For more information, please visit https://www.sba504.loans/rates-and-costs/.
What documents are required to apply for SBA 504 loans for car dealerships?
To apply for an SBA 504 loan for a car dealership, you will need to provide the following documents:
- Business plan
- Personal financial statement
- Business tax returns
- Personal tax returns
- Business financial statements
- Business debt schedule
- Business license
- Lease agreement (if applicable)
- Collateral documents
For more information, please visit SBA 504 Loans for Car Dealerships.