SBA 504 loans for commercial real estate
SBA 504 loans are specifically designed to help businesses buy commercial real estate and other fixed assets with below-market, long-term, fixed interest rates.
SBA 504 loans from TMC feature:
- As low as 10% down, so you can keep your cash working to grow your business. Single-purpose facilities or start-up businesses may require a slightly higher down payment for SBA 504 loans
- Below-market FIXED interest rates with payments fully-amortized over 20 years, no balloon
- No maximum loan amount (unlike 7a loan), so it’s flexible enough to meet your needs
- No additional collateral required
- Closing and other soft costs can be added to SBA 504 loans
SBA 504 loans can be used to buy, build or renovate commercial real estate properties, or to purchase equipment that has a life expectancy of 10+ years. In most cases, a 504 loan project requires a down payment of only 10 percent of the total project cost from the borrower, with the remaining amount split between a first mortgage provided by a commercial lender and a second mortgage provided by a certified development company (also known as a CDC), like TMC Financing.
SBA 504 loans are also called CDC/504 loans and are offered by the U.S. Small Business Administration to provide financing for major fixed assets such as equipment or real estate