504 Rates

Current Blended Rates as of 9/2020  - 3.5-4.25 Fixed for 10,15,20,25,30 years (depending on the credit)

7A Rates

5-6% 25 year deal (fixed or variable depending on the credit)

Amortization

  • 7a – 25 years
  • 504 – Up to 30 years
 

SBA 504

(Commercial Real Estate & Equipment)

90% Fixed-Rate

SBA 7A General Purpose

 ELIGIBLE BUSINESS SIZE

  • Business net worth not to exceed $15 million
  • Average net profit after taxes for 2 consecutive years not to exceed $5 million
  • Determined by industry type
  • Annual sales not to exceed range of $750,000 to $33.5 million for retail, service and agriculture
  • Number of employees not to exceed range of 100 to 1,000 for wholesale and manufacturing

LOAN STRUCTURE

  • 50% bank loan
  • 40% CDC loan
  • 10% borrower down payment
  • Loan structure negotiable; dependent on risk
  • 10% down payment (minimum)

PROCEEDS USE

  • Purchase existing building
  • Land acquisition and ground-up construction (can include soft cost development fees)
  • Expansion of existing building
  • Finance building improvements
  • Purchase equipment
  • Expand, acquire or start a business
  • Purchase or construct real estate
  • Refinance existing business debt
  • Buy equipment
  • Provide working capital
  • Construct leasehold improvements
  • Purchase inventory

PROGRAM REQUIREMENTS

  • 51% owner occupancy for existing building
  • 60% owner occupancy for new construction
  • Equipment must have minimum 10-year economic life
  • 51% owner occupancy for existing building
  • 60% owner occupancy for new construction
  • All assets financed must be used to the direct benefit of the business

COLLATERAL

  • Generally, project assets being financed are used as collateral
  • Personal guaranties of the principal owners of 20% or more ownership are required
  • Subject assets acquired by loan proceeds
  • Pledge of personal residence unless bank can justify why unnecessary
  • Personal guaranties of the principal owners of 20% or more ownership are required

FEES

  • Fees are financed in the 504 loan
  • Fees are negotiated for the 50% bank loan
  • Servicing fee (lowest allowed by SBA) for CDC plus a legal review fee
  • Fees can be financed in the 7a loan
  • Fees vary with the size of loan paired with 504 loan
  • Additional .25% charged on any loan portion above $1 million

If you’re ready to take advantage of the new options the Small Business Administration offers but aren’t sure where to start, complete this form. We’re ready to help.

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Call Us

954-434-1296

Location

5599 South University Dr., Suite 205
Davie, FL 33328