SBA 504 Program
The SBA 504 Loan Program is an economic development program designed to finance fixed assets for small businesses on reasonable terms and to stimulate employment. In other words, to assist entrepreneurs in obtaining long-term financing for capital assets, like the purchase of real estate, costly equipment or any other fixed asset. Recognizing that small business owners sometimes have difficulty obtaining traditional business financing to fuel growth opportunities, an SBA 504 loan allows entrepreneurs to make the investment in their own facilities, continue to expand and subsequently create new jobs.
What are the primary advantages to businesses and business owners?
- Lower down payment requirements (as little as 10%)
- A 20-year, below market, fixed interest rate (on the SBA portion)
- For-profit businesses
- Small to medium sized businesses
- Owner-users that occupy a minimum of 51% of the usable square footage of an existing building or 60% of newly constructed space acquired with loan proceeds
Allowable uses of Loan Proceeds:
- Acquisition of land for construction
- Acquisition of existing land and building
- Building construction and/or renovation
- Acquisition of machinery & equipment
- Associated soft costs: architectural fees, engineering, surveys, appraisals, etc.
Note: The maximum amount of an SBA 504 2nd Mortgage Loan is $5,000,000.
We understand your top priority is operating your small business, not completing paperwork for loan applications. Our SBA team leverages experience and expertise to make the loan process as simple, easy to understand and as seamless as possible in four easy steps:
Step One: Application & Initial Project Evaluation
An SBA loan specialist will discuss your loan request with you and ask the appropriate questions to determine if the proposed project qualifies for SBA financing. Once the determination is made, a checklist of required information needed will be discussed and sent to you. Upon receipt and a favorable evaluation of the financial information (part of underwriting), we will issue a loan proposal. As consultants, we perform this evaluation and loan proposal at no cost or obligation to you.
Step Two: Full Underwriting & Bank Approval
If the terms and conditions of the loan proposal are acceptable, we will complete underwriting the loan request for Bank approval.
Step Three: Commitment Letter & SBA Application
Once First Landmark Bank has approved your loan request, we will present a commitment letter outlining the terms and conditions of the approval. Upon acceptance of the commitment letter, we will work to complete the SBA application on your behalf.
Step Four: Loan Closing
Upon receipt of SBA approval, we will coordinate the loan closing with our closing attorney. During the closing process, we will order any necessary “third-party” reports (appraisals, environmental investigations, title searches) and keep you fully aware of all costs associated with these reports. We'll work with you through the closing process to eliminate the chances of any surprises and close the loan as soon as possible.