SBA 504 Loans for Marinas
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SBA 504 Loans Help Marinas Stay Afloat
If you are located on a coast, then there is a demand for sheltered protection for boats. Marinas continue to see significant demand and generate a lot of profit - $5 billion in 2018 alone. Couple that with the 2% growth the industry has experienced since 2013 and it becomes clear that opening a marina can be a smart decision.
However, would-be business owners find that coming up with the capital can be challenging. The good news here is that SBA 504 loans can buoy your business. These loans can offer up to $5 million in capital for use in specific ways.
For instance, you can use the money from an SBA 504 loan to purchase real estate, and then improve it, including deepening existing anchorage, creating channels, and more. You can use it to build your facility, and even for equipment, such as boat storage and dry dock systems, which can cost hundreds of thousands of dollars.
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!
What are the eligibility requirements for SBA 504 loans for marinas?
The eligibility requirements for SBA 504 loans for marinas are similar to those for other SBA loans. To be eligible, you must be a for-profit business, have a tangible net worth of less than $15 million, and have an average net income of less than $5 million over the past two years. Additionally, you must be able to demonstrate that you have the ability to repay the loan. You must also have a good credit score and a good business credit history. Finally, you must be able to demonstrate that the loan will be used for a sound business purpose.
What are the benefits of SBA 504 loans for marinas?
The SBA 504 loan program offers a number of benefits for marina owners. These loans can provide up to $5 million in capital for use in specific ways, such as purchasing real estate and improving it, building a facility, and purchasing equipment. Additionally, these loans are more versatile than other types of financing, as they can be used for more than just property. However, they do have stricter requirements than most other kinds of financing, including increased credit score requirements.
What are the maximum loan amounts for SBA 504 loans for marinas?
The SBA 504 maximum loan amount for marinas is currently set at $5 million in lifetime dollars. However, if your business is a small manufacturer, you can borrow up to $5.5 million in lifetime dollars. Additionally, if you decide to embark on energy-related projects that fall under the “go green” heading, you can borrow up to $16.5 million in lifetime dollars.
Note that the SBA does not limit the amount you can borrow from a conventional lender. Banks and other lenders are free to contribute as much as you qualify to borrow. However, the SBA/CDC’s contribution is limited to the aforementioned amounts. In most situations, this comes to 40% of the loan’s value (up to the contribution cap that applies to your situation).
What are the interest rates for SBA 504 loans for marinas?
The interest rate for SBA 504 loans for marinas is typically fixed for the life of the loan and is based on the current market rate for 5- and 10-year U.S. Treasury issues. The current rate for a 10-year loan is 4.25%, while the current rate for a 20-year loan is 4.75%.
What are the repayment terms for SBA 504 loans for marinas?
The repayment terms for SBA 504 loans for marinas vary depending on the loan amount and the type of project. Generally, the loan term is 10-20 years for real estate projects and 10 years for equipment projects. The interest rate is fixed for the life of the loan and is based on the market rate at the time of the loan. The SBA 504 loan also requires a 10% down payment from the borrower. For more information, please visit SBA 504 Loans for Marinas and Marina.