SBA 504 Loans for Gyms and Fitness Centers
As the obesity epidemic gripping our nation has grown, so too has the number of people seeking to improve their health and fitness. Gyms and fitness centers serve this goal, and they remain incredibly popular, as evidenced by the fact that the industry generated $34 billion in 2018, and has experien
Better Financing Starts with More Options$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get QuotesSBA 504 Loans Lead to Healthy Gyms and Fitness Centers
As the obesity epidemic gripping our nation has grown, so too has the number of people seeking to improve their health and fitness. Gyms and fitness centers serve this goal, and they remain incredibly popular, as evidenced by the fact that the industry generated $34 billion in 2018, and has experienced 2.8% annual growth since 2013.
Finding the funding to get your gym or fitness center off the ground can be tough, though. An SBA 504 loan can help. These financial tools are designed specifically for purchasing real estate, constructing buildings, improving real estate, and for buying the equipment you need. Weight machines, elliptical machines, treadmills and the like can cost thousands of dollars apiece, and 504 loans help offset those costs.
Other Loan Options Include SBA 7(a) Loans, SBA Express Loans, and Conventional Loans
While the SBA 504 program is a fantastic option for many businesses, it may not cover all of your needs. For example, if you anticipate needing working capital, it might be best to take out both a 504 loan and a 7(a) loan, as 504 loans cannot only be used for specific purposes. However, if you only want working capital financing, you may want to turn to an SBA express loan, as it can be approved significantly faster than a traditional 7(a) loan.
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 SBA 504 loans for gyms and fitness centers?
The eligibility requirements for SBA 504 loans for gyms and fitness centers include a minimum credit score of 660, loan sizes of $30,000 - $5 million, and extensive documentation including year-to-date balance sheet, business tax returns (for the last 2 years), business licenses, personal tax returns and resumes for 20%+ owners, and projected financial statements (1-3 years). Loan purpose can be used for financing commercial real estate, equipment, and working capital, and loan terms are up to 25 years for real estate, up to 10 years for equipment, and up to 10 years for working capital. Additional collateral is often required.
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What are the benefits of SBA 504 loans for gyms and fitness centers?
SBA 504 loans are a great option for gyms and fitness centers because they can be used to purchase real estate, construct buildings, improve real estate, and buy equipment. This can help offset the costs of weight machines, elliptical machines, treadmills, and other equipment that can cost thousands of dollars apiece. Additionally, SBA 504 loans can be combined with SBA 7(a) loans to provide working capital financing, and SBA Express loans can be used for working capital financing if needed.
What are the terms and conditions of SBA 504 loans for gyms and fitness centers?
SBA 504 loans are long-term financing tools specifically designed for purchasing real estate, constructing buildings, improving real estate, and for buying the equipment you need. The loan is typically structured with a loan from a private-sector lender providing 50% of the financing, a loan from a certified development company providing up to 40% of the financing, and the borrower contributing 10% of the cost. The maximum loan amount is $5 million, and the loan term is typically 20 years for real estate and 10 years for equipment. Interest rates are fixed for the life of the loan, and the loan is fully amortized.
For more information, please visit https://sba504.loans/sba-504-loans/.
How can I apply for an SBA 504 loan for my gym or fitness center?
You can apply for an SBA 504 loan for your gym or fitness center by filling out the form on sba504.loans. This loan is designed specifically for purchasing real estate, constructing buildings, improving real estate, and for buying the equipment you need. The loan can be used for weight machines, elliptical machines, treadmills and the like.
If you anticipate needing working capital, it might be best to take out both a 504 loan and a 7(a) loan, as 504 loans cannot only be used for specific purposes. You can find more information about combining SBA 504 loans and SBA 7(a) loans here.
If you only want working capital financing, you may want to turn to an SBA express loan, as it can be approved significantly faster than a traditional 7(a) loan. You can find more information about SBA express loans here and more information about 7(a) loans here.
What documents do I need to provide to apply for an SBA 504 loan for my gym or fitness center?
To apply for an SBA 504 loan for your gym or fitness center, you will need to provide the following documents:
- Business plan
- Personal financial statement
- Business financial statement
- Business tax returns
- Personal tax returns
- Business licenses
- Lease or purchase agreement for the property
- Appraisal of the property
- Environmental assessment of the property
- Cost estimate of the project
- Contractor agreement
For more information, please visit SBA 504 Loans for Gyms and Fitness Centers.