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.
|Soft costs||$50,000 (i.e. appraisal, architect fees, closing costs)|
|Bank - first mortgage||$4,000,000 (50%)|
|SBA 504 - second mortgage||$3,200,000 (40%)|
|Business down payment||$800,000 (10%)|
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.
President, Wessex 504 Corporation
790 West Frontage Road, Suite 337
Northfield, Illinois 60093
Phone: (312) 527-4927
Phone: (847) 510-5958