The SBA 504 Loan Program provides an opportunity for business owners to purchase commercial real estate and long-term equipment at reasonable rates and terms.
Small business owners receive up to 90% financing, allowing them to conserve valuable working capital. Start-up businesses and special purpose properties require additional down payment.
Businesses won’t have to worry about their rate going up during the 504 Loan, and the low rate makes ownership even more affordable.
Payments are spread over 10 or 20 years so they are low on a 504 Loan. And because the bank’s loan is in first lien position, it is typically amortized over a longer term.
Property owners can avoid the risk of ongoing lease payment increases and add possible tax advantages.
With the 504 Loan, the only collateral is the commercial property or equipment that is financed by the loan, leaving other business and personal assets free of liens.
The SBA 504 Loan Program provides an opportunity to strengthen the relationship with the business client.
The bank is in first lien position with 50% loan-to-value, reducing its exposure and credit risk. Bank’s lower loan amount can also help when approaching legal lending limits.
The 504 loan can be used for gap financing on a conventional loan when a business owner doesn’t want to sink valuable business cash in fixed assets.
Lone Star staff will work with the borrower and banker from start to finish enabling most loans to close within 45 days.
We can prequalify applicants, saving everyone time in determining which properties might be most appropriate.
All Rights Reserved. Lone Star State Capital Corporation.