Posts tagged SBA 504 Loan Down Payment
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 loan proceeds.

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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 green” heading, you can borrow substantially more. While all projects are capped at $5 million, you can ultimately borrow up to $16.5 million in lifetime dollars.

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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 SBA 504 loan isn’t the only option out there when it comes to funding your business.

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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, and TD Bank.

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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.

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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 sources other than the cash flow of the business, the cash injection may be considered equity. (Note: the salary of the business owner does not qualify.).”

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