504 Program Benefits for Your Clients

Help your clients enjoy the benefits of 504

The fantastic SBA-504 program may be the perfect option for your business clients. The 504 program allows businesses to secure long term, fixed rate financing for the purchase of real estate or capital equipment with only 10% down.

Typical Project

Cost 
Purchase building$7,000,000
Renovations$650,000
Equipment$300,000
Soft costs$50,000 (i.e. appraisal, architect fees, closing costs)
Total:$8,000,000
Financing 
Bank - first mortgage$4,000,000 (50%)
SBA 504 - second mortgage$3,200,000 (40%)
Business down payment$800,000 (10%)
Total:$8,000,000

The 504 program makes the most sense not only for the business, but for lenders as well. With 504, banks have the first lien position and typically a 50% loan-to-value ratio, thus minimizing risk. This helps make it easier for banks to lend in the current lending climate.

Call or e-mail for more information.

info@wessex504.com

Karen Lennon
President, Wessex 504 Corporation
790 West Frontage Road, Suite 337
Northfield, Illinois 60093
Phone: (312) 527-4927
klennon@wessex504.com

Elisabeth Williams
Phone: (847) 510-5958
lwilliams@wessex504.com