Small businesses searching for working capital to develop their company frequently miss among the best-kept secret in financing – the Small Business Administration 504 loan, based on CDC Small Business Finance.
SBA 504 loans are particularly made to help small business proprietors buy, improve or construct office building, or purchase large tools and equipments for business.
President of CDC Small Business Finance, Kurt Chilcott said, “The Small Business Administration’s 504-loan is a superb tool to assist small businesses develop; however it’s frequently excluded from the discussion business proprietors have with their financial experts”.
Small Business Administration’s 504-loan attracts small business proprietors who’re weary of having to pay rent and wish to build equity on their own. This program enables entrepreneurs to gain access to low-fixed-rate, 20-year funding up to $20 million having a minimal lower-payment of 10%. The recent Small Business Administration’s 504-loan rates are 4.94%, fixed for 20 years.
Perks of SBA-504 loans include:
• Maintaining cash to fulfill capital requirements
• Tax savings
• No collateral needed
• No balloon obligations
To be eligible for a Small Business Administration’s 504-loan, companies should be:
• For revenues
• Structured as a corporation, sole proprietorship, LLC or partnership
• Possess a business worth below $15 million along with a net-profit after taxes below $5 million in the last two years.
The Small Business Administration’s 504-loan program was produced to motivate economic development by helping small businesses develop and create jobs. Licensed development businesses like CDC Small Business Finance work with banks to offer these particular loans.
To help small businesses develop and expand, the Small Business Administration’s 504-loan program includes several extra provisions, including individuals for energy efficiency and veteran possessed companies.