504 Rates
Current Blended Rates – Starting at 5.5% Fixed for 10, 15, 20, 25, 30 years (Depending on Credit)
7A Rates
Prime + 2.75% 25 Year Deal (Fixed or Variable, Depending on Credit)
Amortization
- 7a – 25 Years
- 504 – Up to 30 Years
SBA 504
(Commercial Real Estate & Equipment)
90% Fixed-Rate
SBA 7A General Purpose
ELIGIBLE BUSINESS SIZE
- Business net worth not to exceed $15 million
- Average net profit after taxes for 2 consecutive years not to exceed $5 million
- Determined by industry type
- Annual sales not to exceed range of $750,000 to $33.5 million for retail, service and agriculture
- Number of employees not to exceed range of 100 to 1,000 for wholesale and manufacturing
LOAN STRUCTURE
- 50% bank loan
- 40% CDC loan
- 10% borrower down payment
- Loan structure negotiable; dependent on risk
- 10% down payment (minimum)
PROCEEDS USE
- Purchase existing building
- Land acquisition and ground-up construction (can include soft cost development fees)
- Expansion of existing building
- Finance building improvements
- Purchase equipment
- Expand, acquire or start a business
- Purchase or construct real estate
- Refinance existing business debt
- Buy equipment
- Provide working capital
- Construct leasehold improvements
- Purchase inventory
PROGRAM REQUIREMENTS
- 51% owner occupancy for existing building
- 60% owner occupancy for new construction
- Equipment must have minimum 10-year economic life
- 51% owner occupancy for existing building
- 60% owner occupancy for new construction
- All assets financed must be used to the direct benefit of the business
COLLATERAL
- Generally, project assets being financed are used as collateral
- Personal guaranties of the principal owners of 20% or more ownership are required
- Subject assets acquired by loan proceeds
- Pledge of personal residence unless bank can justify why unnecessary
- Personal guaranties of the principal owners of 20% or more ownership are required
FEES
- Fees are financed in the 504 loan
- Fees are negotiated for the 50% bank loan
- Servicing fee (lowest allowed by SBA) for CDC plus a legal review fee
- Fees can be financed in the 7a loan
- Fees vary with the size of loan paired with 504 loan
- Additional .25% charged on any loan portion above $1 million
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Location
5599 South University Dr., Suite 205 Davie, FL 33328