SBA 504 Loans for Preschools and Daycare Centers
You can use an SBA 504 loan to buy or build a preschool, or even retrofit a building for your daycare business.
What Is SBA Form 159?
SBA form 159, the Fee Disclosure and Compensation Agreement, is necessary for reporting the fees being paid during an SBA loan transaction. It is a safety net designed to help prevent lenders from paying fees to other parties at your expense. This form is a binding document that spells out what fe
What Is the Small Business Administration?
The Small Business Administration is an agency operated by the US federal government, with the specific task of helping entrepreneurs and small business owners avoid hurdles and pitfalls, and achieve success. The organization was founded in 1953, and has helped millions of business owners and entrep
What Is SBA Form 770?
SBA form 770 is a Financial Statement of Debtor. It can be downloaded from the SBA here . You will need to download and complete this form when applying for a 504 loan , as well as for other SBA loans , such as the 7(a) loan . According to the SBA , “The primary purpose of collecting this infor
What Is an SBA 504 Loan?
The SBA 504 loan program, also called the Certified Development Company program, is designed to provide assistance for business owners with very specific requirements. This is not a general loan that can be used for whatever a business needs, nor is it designed for new companies that need startup ca
What Is SBA Form 413?
SBA form 413 is required when applying for both SBA 504 and SBA 7(a) loans , and is a personal financial statement. According to the SBA , “The SBA uses the information required by the form 413 as one of a number of data sources in analyzing the repayment ability and credit worthiness of an appl
What Is SBA Form 912?
SBA form 912 is a statement of personal history, and is one of several forms used by the SBA to help assess your character and your creditworthiness. According to the SBA, they “use form 912 as one part of the assessment of program eligibility.” Further, they use “this form to make a character and
What are the SBA 504 Loan Limits?
Technically, there are no actual loan limits placed on the SBA 504 loan . That is, the SBA does not limit the amount of money that you can borrow from a conventional lender in this scenario. However, the portion sourced from the CDC is limited to just 40% of the total amount and it cannot excee
What Is the Required SBA 504 Loan Down Payment?
When you take out an SBA 504 loan , you will be required to make a down payment . That down payment will generally be 10% of the loan’s total value. However, there are situations in which you could be required to put down significantly more money.
What Is the SBA 504 Maximum Loan Amount?
The SBA 504 maximum loan amount 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. It should also be noted that if you decide to embark on energy-related projects that fall under the “go gree
What Are the Fees for the SBA 504 Loan?
A wide range of fees are charged in the 504 loan process. However, all of these fees are rolled into the loan in order to limit your upfront cash contribution requirements. The most common fees that you will be charged include SBA guarantee fees, funding fees, CDC processing fees, underwriting fee
What Is the SBA 504 Loan Application Process?
The SBA 504 loan application process is actually relatively simple. Before applying, however, borrowers should make sure that they meet the eligibility requirements for 504 loans . Other steps include finding a CDC as well as choosing the lender that will contribute the other part of your loa
Who Are the Top SBA 504 Lenders?
Each year, the SBA insures billions of dollars in 504 loans . In fact, in 2017, annual SBA 504 loan volume hit a new high of $5 billion— but who are the most highly-qualified lenders issuing these loans? In 2018, some of the top-rated SBA 504 lenders included Wells Fargo, JPMorgan Chase, US Bank
How Does the SBA 504 Loan Compare to a 7(a) Loan and Other Loans Available?
Making an informed decision for your business funding needs is essential, but it can be difficult given the number of different financial tools available. One of the most popular small business loans on the market is the SBA 7(a) loan . How does it compare to the 504 loan program ?
What Are the Pros and Cons of the SBA 504 Loan Program?
SBA loans come with very low interest rates and terms that make them attractive to small business owners. Learn the pros and cons of the SBA 504 loan.
Can I Use an SBA 504 Loan to Invest in Real Estate?
In contrast to other business loans, including other SBA loans , the SBA 504 loan program is specifically geared to help small businesses purchase real estate of all types. This could be an existing building, or it could be empty land and funds for construction of the property. This focus natural
SBA 504 SOP (Standard Operating Procedures): What You Need to Know
The SBA has SOPs, or standard operating procedures, in place for all of its loan programs. These procedures speak to a wide range of things, from borrower contributions to limitations on what loans can be used for, how default loans are handled by the agency, and a great deal more.
SBA 504 Loans for Restaurants
With growth over 4% in the past three years, and over $300 billion in revenue in 2018 alone, the restaurant industry is booming. And, that means that it could be an amazing time to expand your restaurant. Of course, you’ll need funding if you want to make your eatery all it can be. That’s where an
SBA 504 Loans for Real Estate Agents
The SBA 504 loan program is designed for small businesses, and enables them to purchase real estate, buy or construct buildings, modernize their facilities, improve energy efficiency, and more. Realtors can take advantage of this government-backed program in a number of ways.
SBA 504 Loans for Private Schools
Public schools are funded by taxpayer dollars, but that is not the case with private schools. However, more and more parents are interested in the better education these facilities can offer their children. With an expected $68 billion in revenue for 2018, private schools have grown almost 1% in the
SBA 504 Loans for Tax Preparation Firms
The tax prep industry, which employs nearly 300,000 people, is expected to pull in an incredible $10 billion in revenue this year. Plus, the industry is growing fast, with an estimated expansion rate of almost 3% per year since 2014. All this makes it an excellent time for tax prep entrepreneurs to
SBA 504 Loans for Self-Storage Facilities
Self-storage has become an enormous industry in the US. Today, almost every American town has at least one decent-sized self-storage facility. It should be no surprise then then that the industry is expected to generate an incredible $37 billion in 2018, and has grown at an aggressive 3.7% since 201
SBA 504 Loans for Liquor Stores
America is a thirsty nation. National trends show that for the first time in decades, the consumption of liquor has outpaced that of wine and beer, making it a great time to invest in a liquor store. Of course, you can also have the best of all worlds by cashing in on the craft beer, local wine, and
SBA 504 Loans for Plumbers
Skilled professionals like plumbers, electricians, carpenters, roofers, and mechanics all form the backbone of America. And, as the housing boom continues, plumbers find themselves in higher and higher demand. In fact, the plumbing industry has grown at an aggressive 4% since 2013, and today generat
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
SBA 504 Loans for Veterinary Practices
SBA 504 loans are designed to benefit small businesses of all types throughout the United States. In most cases, these loans offer up to $5 million that can be used for some very specific things. However, when it comes to manufacturers, you’ll find that the rules change a bit – manufacturing firms
SBA 504 Loans for Retail Stores
While malls might be declining in patronage, that cannot be said for small, local retailers. In fact, small specialty real stores have grown by 1% in the last few years, and are expected to generate $41 billion in revenue in 2018.
Can a Non-Citizen Apply for an SBA 504 Loan?
While non-citizens can apply for an SBA 504 loan, it can be complicated. That's especially true if the non-citizen is not a lawful permanent resident.
Can I Use an SBA 504 Loan for an Online Business?
The Internet has revolutionized almost every industry. There are very few segments of the economy that have not been affected at least somewhat by the advent of the Internet, and many segments have seen the rise of “online only” businesses. Of course, this is something of a misnomer. The businesses
SBA 504 Loans for Nursing Homes
Nursing homes fall into the wider retirement communities segment of the economy, which continues to see significant growth and development. It is expected to generate $69 billion in 2018 alone, and there are currently almost 46,000 retirement communities within the United States. This makes nursing
SBA 504 Loans for Landscaping Companies
Landscaping services have experienced ongoing growth and demand as the housing market has improved. Since 2013, the landscaping industry has experienced almost 6% growth each year. And, in 2018, the industry is expected to create an incredible $93 billion in revenue. All this means that it could be
SBA 504 Loans for Office Buildings
One of the largest segments of commercial construction involves the development of office buildings. This segment of the economy has grown at a relatively fast rate, expanding by 11.3% since 2013. And, the commercial construction sector is expected to generate $227 billion in 2018. making it one of
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
SBA 504 Loans for Medical Centers
More and more, medical centers are appearing where once consumers only had access to individual private practices. Medical centers, whether we’re talking about multi-specialty clinics, urgent care facilities, or something else, offer patients the means to find a wide range of treatments under one ro
SBA 504 Loans for Insurance Agencies
Everyone needs insurance, and we all need a range of insurance types. Insurance agencies are seeing booming business today, with the segment expected to generate $160 billion in revenue in 2018. For agents seeking to establish themselves in a market, it is important to have a physical location. An
SBA 504 Loans for Hotels
Can you take out a 504 loan for a hotel? Yes, you can! With $194 billion in revenue in 2018, the industry has grown by 4.4% since 2013. These loans are focused on growth and development, so if your hotel is expanding, or you’re adding additional equipment, renovating rooms, or otherwise building a
SBA 504 Loans for Motels
Anyone who travels will find that they need accommodations. For some, this means a 5-star resort. However, for a growing number of travelers, motels are the destination of choice. In fact, the motel industry generated almost $200 billion in 2018, growing at a rapid 4.4% between 2013 and 2018.
SBA 504 Loans for Medical Offices
The medical industry is one of the fastest-growing in the nation when taken as a whole, which means that now is an excellent time to build your own medical office. The industry is expected to grow by 2.4% in 2018, with total revenue of $284.4 billion. An SBA 504 loan can allow you to break ground
SBA 504 Loans for Marinas
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
SBA 504 Loans for Manufacturers
SBA 504 loans are designed to benefit small businesses of all types throughout the United States. In most cases, these loans offer up to $5 million that can be used for some very specific things. However, when it comes to manufacturers, you’ll find that the rules change a bit – manufacturing firms
SBA 504 Loans for HVAC Companies
From homes and businesses to medical facilities and government offices, heating and cooling is vital for everyone. As as a result, the HVAC industry is booming, with 113,490 businesses nationwide, and a growth rate of almost 3% between 2013 and 2018. Plus, revenues are incredibly high: the HVAC indu
SBA 504 Loans for Laundromats and Dry Cleaners
Dry cleaners and laundromats, while less in demand today than in previous decades, are still vital parts of the economy. The laundromat segment is expected to generate $5 billion in revenue in 2018, and dry cleaners are expected to earn around $9 billion during the same period.
Can Franchises Benefit from an SBA 504 Loan?
It may seem like franchises would not be a good fit for an SBA loan, but that is actually not the case. Many franchises can qualify for an SBA loan, primarily 7(a) and 504/CDC loans. With that being said, not all franchises will qualify.
Can You Use an SBA 504 Loan to Finance Business Vehicle Purchases?
While most business loans can be used for anything your company might need, that’s not the case with the SBA 504 loan . It is strictly to be used for real estate-related needs, or for the purchase of heavy equipment. That eliminates the purchase of vehicles, even if you intend to purchase fleet veh
SBA 504 Loans for Golf Courses
Golf, as we know it today, originated in Scotland more than 500 years ago. Today, the sport offers everything from a fun afternoon on the links to hardcore challenges that pit professional players against one another. However, in order to function, the sport needs golf courses, which also happen to
SBA 504 Loans for Dental Labs
While many dentists offices have incorporated work traditionally handled by dental labs, that does not mean the demand for laboratories has wanted. In fact, it is higher than ever, with employment expected to rise to almost 51,000 individuals by the end of 2018.
SBA 504 Loans for Gas Stations
You only need to take a look around your local area to realize that gas stations are thriving today. In fact, the industry is at one of its highest points in history in terms of growth and profitability. Expected revenue for 2018 is $419 billion. Gas station owners can make use of SBA 504 loans to
SBA 504 Loans for Bars and Clubs
Entertainment is important, and it takes all kinds to make the world go ‘round. Bars and clubs certainly fall into that category. In today’s market nightclubs, dance clubs, and themed bars all have massive appeal. As a result, the nightlife industry has grown at an aggressive 2.5% each year since 20
SBA 504 Loans for Car Washes
In many areas of the country, new car washes are being constructed at a frenetic pace. Older car washes are being retrofitted with new equipment and new façades to attract customers. With an expected annual revenue of $11 billion and a growing number of businesses, this is an excellent niche for an
SBA 504 Loans for Convenience Stores
Convenience stores, especially those set us as a gas station with a store attached that sells food, beverages, and sundries, have experienced a major surge in popularity in the US. Major chains like RaceTrac, QuikTrip, Wawa and others are expanding throughout the country, while competing with newer
SBA 504 Loans for Beauty Salons
Across the U.S., beauty salons continue to see increasing demand. With almost 2% growth in the last three years and an expected $44 billion in revenue in 2018 alone, these businesses can be quite profitable. However, beauty salon owners often face challenges when finding funding to expand their busi
SBA 504 Loans for Dental Offices
Dentists have never been in higher demand than today. With increasing access to dental insurance and a better understanding of what constitutes good oral health, consumers have become greatly interested in taking care of their teeth, from whitening treatments to crowns. The industry is expected to e
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
SBA 504 Loans for Computer Repair Companies
While the cost of computers might have come down, there is still a significant need for repair professionals. From replacing damaged hard drives to installing new motherboards and upgrading RAM and video cards to handle modern gaming needs, there is a lot of demand for computer repair companies. In
SBA 504 Loans for Funeral Homes
As the Baby Boomer generation continues to age, the demand for a wide range of businesses increases, including funeral homes. The industry has grown by a full 1% in the past three years, and is expected to generate a staggering $16 billion in 2018. This means that it could be a great time to grow yo
SBA 504 Loans for Florists
While traditional, local florists might be struggling to remain competitive, the situation is brighter when you consider the wider online industry. Florists with a brick and mortar storefront are actually seeing a decline of 1.1% from 2013 to 2018. However, this actually makes this market segment a
SBA 504 Loans for Bed and Breakfasts
While hotels, motels, and even resorts offer the chance to enjoy comfortable accommodations, bed and breakfasts fill a unique niche. The demand for these businesses is borne out by the fact that this segment has grown at a fast clip of 5.4% a year since 2013, and is expected to generate a record $3
How Can I Improve My Business Credit for an SBA 504 Loan Application?
As we’ve mentioned elsewhere on this site, you should have a credit score of 680 or higher if you want to apply for a 504 loan . That can be challenging for small businesses. Thankfully, there are ways that you can improve your credit and make your business a better funding candidate while reducing
What Is a Certified Development Company and Why Are They Involved in 504 Loans?
According to the SBA, “A Certified Development Company (CDC) is a nonprofit organization that promotes economic development within its community through 504 loans. CDCs are certified and regulated by the SBA, and work with SBA and participating lenders (typically banks) to provide financing to small
Can You Take Out Multiple SBA 504 Loans?
Can you take out multiple SBA 504 loans ? Yes, you can. In fact, you can take out multiple SBA loans over time in order to build a successful business. However, it is not as simple as just making a second application. If you took out your first 504 loan and eventually worked through all the ava
What are the Job Creation Requirements of the SBA 504 Loan Program?
504 loans exist to help small businesses grow and expand. However, they are not available to all companies. In order to qualify, you must meet specific requirements. In general, this means that you need to create a specific number of jobs based on the amount of the loan. However, that’s not always t
How Is the SBA 504 Loan Structured?
It’s important to realize the difference between a 504 loan and many other types of loans. For instance, with a home loan, your funds go specifically towards the purchase of the house and land on which it sits. It may also be used to pay some associated costs, and there are loan options that will al
What is the Required Debt Service Coverage Ratio (DSCR) for SBA 504 Loans?
In order get approved for an SBA 504 loan , you must prove your company’s ability to repay it. A business plan and the necessary financial documents play a role in that. However, most underwriters will use a debt service coverage ratio, or DSCR, as a major element in their decision-making process.
Can You Combine an SBA 504 Loan and an SBA 7(a) Loan?
There are compelling reasons for a business owner to consider taking out an SBA 504 loan. They have lower interest rates than other business loans and are somewhat less stringent in terms of borrower requirements, too. In comparison, the SBA 7(a) loan is the most popular business loan offered by t
Are There Prepayment Penalties with an SBA 504 Loan?
Consumers have received greater protection against prepayment penalties on mortgage loans in the past few years. However, the same protections do not extend to small business owners. The simple answer to the question of whether or not there are prepayment penalties with an SBA 504 loan is yes, the
SBA 504 Eligibility: What You Need to Know
In order to take out an SBA 504 loan , your business must be eligible for the program. The eligibility requirements are pretty simple, though. In order to qualify, businesses must be for-profit enterprises, must not be above a certain size, and cannot be in engaged or involved in certain industri
What Are the Alternatives to the SBA 504 Loan?
The SBA 504 loan is an incredible way to finance the purchase of owner-occupied commercial real estate, heavy equipment, and other fixed assets, but it isn’t right for everyone. While the interest rates are low, 504 loans usually require high credit scores and strong financials. Fortunately, the S
How Long Does It Take an SBA 504 Loan to Get Approved?
The length of time required for an SBA 504 loan to be approved can vary drastically, but averages between 60 and 90 days. With that being said, it may take up to six months in some situations. There is no hard and fast rule here, and each situation will be unique.
Can You Use a 401(k) as an SBA 504 Loan Down Payment?
Yes, you can use your 401(k) as an SBA 504 loan down payment . Doing so offers some additional benefits, as well, including the fact that you will not incur tax penalties on the money that you pull from the fund for that purpose
Can Assisted Living Facilities Use SBA 504 Loans?
Yes, assisted living facilities can make use of SBA 504 loans . In fact, these facilities are a prime example of an almost perfect fit. The demand for assisted living, memory care, and other age-related care facilities is growing exponentially as Baby Boomers age out. In fact, total revenue for the
SBA 504 Loans for Auto Repair Shops
As the number of vehicles on the road rises, so too does the demand for qualified professionals to service and repair those vehicles. The auto repair industry is expected to see almost 3% growth between 2013 and 2018, with a forecasted $67 billion in revenue for 2018 alone. Employment is also expect
Can You Borrow Money for an SBA 504 Loan Down Payment?
Yes, you can borrow money for use as an SBA 504 loan down payment. However, you need to comply with some basic requirements in order to use borrowed money as a down payment. For instance, according to the SBA, “if the small business applicant can demonstrate repayment of this personal loan from so