What is a SBA 7(A) / 504 Loan?
A SBA 7(A) / 504 loan is a type of loan that is partially guaranteed by the Small Business Administration (SBA) and is designed to help small businesses purchase or refinance commercial real estate. The SBA 504 loan program is specifically designed to help small businesses acquire fixed assets, such as real estate, machinery, and equipment.
How Does a SBA 7(A) / 504 Loan Work?
To qualify for a SBA 7(A) / 504 loan, borrowers must meet the SBA's size standards for a small business and be able to demonstrate a need for the loan. The lender will review the borrower's financial information and the details of the property to determine the loan amount and terms.
Benefits of a SBA 7(A) / 504 Loan
One of the benefits of a SBA 7(A) / 504 loan is that it offers small businesses access to long-term, fixed-rate financing at a lower down payment and interest rate than traditional commercial mortgages. This can be particularly attractive to small businesses that may not qualify for traditional financing due to size or credit history.
Get the Financing You Need for Your Small Business
At Commercial Mortgage Help, we have a team of experienced loan officers who are dedicated to helping small businesses find the right financing solution for their needs. If you are a small business owner looking to purchase or refinance commercial real estate, we encourage you to contact us to learn more about our SBA 7(A) / 504 loan options.
