SBA 504 Loan Program
When it comes to making business growth decisions, companies need to invest in major fixed assets. The federal government’s SBA 504 Loan program is designed to support small businesses to fulfill these needs and drive their growth. We at Mid-Atlantic Commercial Capital, LLC can guide you through the process, qualify your business, and assist you in applying for the loan through reputed lenders. The SB 504 is a proven program that promotes benefits for everyone involved including the small business, the participating lender, and the community.
Things to Know About the SBA 504 Loan Program
Approved small businesses can avail fixed-rate financing under the 504 Loan program for the purchase of fixed assets meant for modernization or business expansion. These loans are available only through SBA approved community partners, known as Certified Development Companies.
Uses of 504 Loan Funds
Small businesses can apply for SBA 504 Loans for the following fixed asset costs:
- Buying existing buildings
- Modernizing, converting, or renovating existing facilities
- Constructing new facilities
- Buying land or for land improvement
- Buying long-term machinery or equipment
- Refining debt related to business expansion through renovation or new facilities or equipment
Why Choose 504 Loan for Your Small Business?
SBA 504 Loan program provides both short-term and long-term benefits. It allows you to focus more on growing and developing your small business. The various benefits are as follows:
- Avail financing up to 90% of the cost of the asset
- Fixed rate of interest
- Longer loan amortizations
- Savings to improve cash flow
Goals of SBA 504 Loan Program
There are many government goals linked with providing the 504 Loan to a small business. These goals fall under different categories.
Public Policy Goals
- Revitalization of a business district within a community having a redevelopment/revitalization plan
- Expansion of women-owned/controlled small businesses
- Expansion of veteran-owned/controlled small businesses
- Expansion of exports
- Expansion of minority-owned business
- Improving small business competitiveness and productivity
- Supporting rural development
Community Development Goals
- Improvement, stabilization, and/or diversification of the local economy
- Generating new income within the community
- Stimulation of other business development
- Supporting manufacturing firms and their production facilities within the country
- Supporting businesses located in Labor Surplus Areas
Modernization or Upgrading of Facilities
The SBA 504 Loan program also supports various other modernization and upgrading goals with the intention of meeting environmental, health, and safety concerns. This includes supporting planning, machinery, and process upgrades and also renewable energy source implementation.
We at Mid-Atlantic Commercial Capital, LLC specialize in assisting small businesses to meet their commercial financing needs. We support the SBA 504 Loan program through our network of reputed and major lenders. Our network of lenders includes private investors, government funding agencies, collateral lenders, and a list of special lenders. We have long-term and successful track records with our network of lenders.
If you have a small business and are seeking funding for making investments in major assets, feel free to reach us for expert advice and guidance. Call us at (540) 825-9800 or write to us at email@example.com for more information.