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 $ 5,000,000
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 through Resurgens Bank
- 40% financing through SBA 504 second mortgage (provided through a local Certified Development Corporation (CDC) )
- 10% minimum down payment by the borrower (15% in the case of special use properties)
Terms for First Mortgage
- Up to 30 years, fully amortized
- Competitive rates available
- Prepayment penalty applies and based on various factors
Terms for First 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
