SBA 504


Borrower Benefits

  • Low down payment of only 10%
  • Long repayment terms – reducing monthly payments
  • Frees up cash flow to expand your business
  • Many rate options including long term fixed rates
  • Associated fees and soft costs may be financed in the loan.

 

Loan Amounts

  • Available up to $10,000,000

 

Use of Proceeds

  • Purchase, refinance, construction, or renovation of owner-occupied commercial real estate
  • Purchase and installation of long-life machinery and equipment.

Standard Loan Structure

  • 50% financing ? First mortgage from Quadrant Financial
  • 40% financing ? SBA 504 second mortgage (provided through a local Certified Development Corporation)
  • 10% minimum down payment by the borrower (15% in the case of special use properties)

 

Terms

  • First mortgage
    • Up to 30 years, fully amortized
    • Competitive rates available
    • Prepayment penalty applies & is set based on various factors
  • Second mortgage
    • 20 years, fully amortized
    • Fixed rate is determined at SBA-guaranteed 504 debenture sale
    • Fees set by CDC
    • Prepayment penalty for initial 10 years, none after the end of year 10