Key Advantages of SBA-504 loans over traditional business loans
Low down payment - The business owner puts only 10% down, borrowing up to 90% of the total financing needs, thus preserving valuable working capital for the business.
Long term financing - Repayment periods are longer than conventional bank loans - 20 years fully amortized for real estate loans (10 years for equipment loans). The borrower's monthly loan payment is more affordable, improving cash flow.
Below-market, fixed interest rate - The below market, fixed interest rate protects against future rate fluctuations, providing low and predictable monthly payments.