SBA 504 Loans for Trucking and Transport Companies
Once upon a time, America ran on railroads. While they do still play a vital role in the transportation industry, trucking companies are now the backbone of the nation. For those looking to get into the trucking and transportation sector, there has never been a better time. With $195 billion in reve
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 QuotesTrucking and Transport Companies Can Use SBA 504 Loans to Expand Their Businesses
Once upon a time, America ran on railroads. While they do still play a vital role in the transportation industry, trucking companies are now the backbone of the nation. For those looking to get into the trucking and transportation sector, there has never been a better time. With $195 billion in revenue for 2018 in the long-haul segment alone, there is immense demand for trucking services throughout the United States.
Common SBA 504 Loan Uses for Trucking and Transport Firms
Entrepreneurs looking to get involved in the trucking and transport industry can benefit from SBA 504 loans. These are designed for the purposes of buying real estate, as well as building or buying buildings, and even purchasing necessary equipment. This allows business owners to purchase real estate and improve it to become warehouses, or to purchase existing warehouses and improve them. Equipment such as conveyors, racking and shelving, trucks, tankers, trailers and the like can also cost tens or even hundreds of thousands of dollars, all of which can generally be funded with an SBA 504 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 trucking and transport companies?
The eligibility requirements for SBA 504 loans for trucking and transport companies are as follows:
- The business must be a for-profit, operating small business
- The business must occupy at least 51% of the project
- 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
- The business must be located in the United States and must operate primarily within the United States or make a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor
For more information, please visit the SBA website.
What are the benefits of SBA 504 loans for trucking and transport companies?
SBA 504 loans offer a number of benefits for trucking and transport companies. These loans are designed to help businesses purchase real estate, build or buy buildings, and purchase necessary equipment. This allows business owners to purchase real estate and improve it to become warehouses, or to purchase existing warehouses and improve them. Equipment such as conveyors, racking and shelving, trucks, tankers, trailers and the like can also be funded with an SBA 504 loan.
The loan terms are also very attractive. The SBA 504 loan program offers long-term, fixed-rate financing with a 10-20 year term. The loan is also partially guaranteed by the Small Business Administration, which helps to reduce the risk for lenders and makes it easier for businesses to qualify for financing. Additionally, the SBA 504 loan program offers competitive interest rates and low down payments, making it an attractive option for businesses looking to expand.
Overall, the SBA 504 loan program is a great option for trucking and transport companies looking to expand their businesses. The loan terms are attractive, the interest rates are competitive, and the loan is partially guaranteed by the Small Business Administration, making it easier for businesses to qualify for financing.
What are the different types of SBA 504 loans available for trucking and transport companies?
The SBA 504 loan program offers two different types of loans for trucking and transport companies. The first is a fixed-rate loan, which is typically used for the purchase of real estate and equipment. This loan is typically structured with a 10-year term and a 20-year amortization period. The second type of loan is a variable-rate loan, which is typically used for the purchase of working capital and other business expenses. This loan is typically structured with a 7-year term and a 10-year amortization period. Both types of loans offer competitive interest rates and flexible repayment terms.
For more information on the SBA 504 loan program, please visit https://sba504.loans/sba-504-blog/what-is-the-sba-504-loan/.
How can trucking and transport companies apply for SBA 504 loans?
Trucking and transport companies can apply for SBA 504 loans to purchase real estate, build or buy buildings, and purchase necessary equipment. The loan can be used to purchase real estate and improve it to become warehouses, or to purchase existing warehouses and improve them. Equipment such as conveyors, racking and shelving, trucks, tankers, trailers and the like can also be funded with an SBA 504 loan.
For more information, you can visit https://sba504.loans or https://sba504.loans/sba-504-blog/what-is-the-sba-504-loan.
If you would like to apply for an SBA 504 loan, you can fill out the form on https://sba504.loans for a risk-free consultation and a free SBA loan quote.
What are the advantages of SBA 504 loans for trucking and transport companies?
SBA 504 loans offer a number of advantages for trucking and transport companies. These include:
- Low down payment requirements – typically 10% of the total project cost.
- Long-term, fixed-rate financing – up to 25 years.
- No balloon payments.
- No personal guarantees.
- Competitive interest rates.
- Flexible loan terms.
For more information on SBA 504 loans, please visit https://sba504.loans/sba-504-blog/sba-504-loans-for-trucking-and-transport-companies.