The SBA 504 Loan has many benefits and advantages for business owners, bank partners and communities large or small. With the SBA 504 Loan Program, business owners benefit from below market, long-term fixed rate financing. Communities are enriched with more jobs for economic stability and banks enjoy less risk. Everyone wins with the SBA 504 Loan.

SBA 504 Advantages To Consider:

Reduced risk on projects because of a 50% loan to value ratio

Meets CRA requirements and promotes community economic development

Provides additional tools for lender

Borrowers may finance up to 90% financing for commercial real estate purchases

Business owners can preserve more cash flow with lower down

SBA 504 Loans have historically below market, fixed, long-term interest rates

Longer amortization allows for smaller monthly payments improving cash flow

Equipment and machinery can be financed

Pre-payment of the SBA 504 loan is allowable and more attractive later in the loan

Bank's first position loan may be refinanced: BDFC will subordinate to new loan subject to program restrictions

The SBA 504 loan is assumable upon sale of the project to a qualified buyer that meets program guidelines

Closing costs and other soft costs can be included in the loan

We coordinate the loan closing with you, the title company and your lender

The 504 loan is designed to enhance job creation in communities