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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