SBA 504 Loan Programs
Advance Capital Group is a nationally recognized company helping entrepreneurs achieve their business goals. We have been designated as a Preferred Financial services company by SBA lenders to have loans processed more quickly and efficiently than many others.
There are a number of advantages to an SBA loan, including longer terms, no points and no balloon payments.With an SBA 504 Loan, you get long-term, fixed rate financing at below prime interest rate. You typically put in only 10% cash which allows you to use the other cash that you would have had to put up using conventional sources for working capital giving you a faster ROI. It allows you to control your money rather than placing it into a fixed asset.
Who is Eligible for a SBA 504 loan? |
Most for-profit small businesses are eligible for an SBA guaranteed loan. This includes manufacturers, wholesale, retail and service businesses as well as independent or franchise businesses.
SBA 504 Loan Qualifications |
- Retail and service businesses with sales (3-year average) not exceeding $6 million to $20 million, depending on the industry
- Wholesale businesses with employees up to 100 regardless of sales volume
- Manufacturers with employees up to 500 depending on the industry, regardless of sales volume
SBA 504 Loan Size $250,000 to $10.0 million |
What is the maximum SBA loan amount?
- $2,000,000
- $10,000,000 for manufacturing companies
- 40% of project cost for a multi-purpose facility; or
- 35% of project cost for a special purpose facility (restaurant, gas station); or
- 35% of project cost for a startup business (less than 2 years old); or35% of project cost for a startup business (less than 2 years old); or
- 30% of project cost for a startup business in a special purpose facility
Loan Fees
- SBA Loan packaging fee: $750 to $2,000
- Fee is based on loan size, it is collected at the time of loan submission; refunded if declined by credit
- SBA loan guaranty fee: 1.70% to 2.60% of the loan amount
- Fee can be financed in the loan
Use of SBA 504 Loan Proceeds |
- Commercial real estate (purchase land and construction of building)
- Leasehold improvements (remodeling or rehabilitation of an existing building)
- Building expansion
- Land acquisition, and new, ground-up construction
- Tenant improvements
- Working capital (offered in conjunction with some of the above)
- Equipment acquisition (with life expectancy of 10 years or more)
Other Credits Considerations |
- Business must have adequate historic cash flow to cover the proposed debt
- Business debt to net worth must meet industry averages
- Borrowers must be actively involved in the day-to-day operation of the business
- Satisfactory personal credit histories are required for all principles and guarantors
- No past bankruptcies or felony arrests
For additional questions and/or clarification regarding the SBA 504 program or SBA 7A loan program, please contact us directly at 888-346-6871 for an sba loan.
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