SBA Benefits

Why an SBA 504 Loan is Best for Your Business

* Low down payment; 90% financing for commercial real estate utilizing the 504 Loan Program allows business owners to preserve more capital for other uses and gain the highest return for that capital when used to purchase commercial property.

* Businesses can save on interest expense by not accepting market interest rates when below market rates are available with the 504 Loan Program.

* Longer loan amortization schedules allow for smaller monthly payments, which have less impact on business cash flow. Since pre-payments are always allowed, business owners can have the best of both worlds.

* By investing 10% equity, receiving below market rates and having the benefits of longer loan amortization schedules versus traditional lending, business owner's cash flow is less impacted and business owners can still realize all of the advantages of purchasing or refinancing commercial real estate.

* Owning commercial real estate versus leasing typically has an immediate reduction of up to 40% of real estate expenses, plus the added benefit of converting the 3rd largest expense facing businesses into a fixed cost that does not increase by an average of 3.5% each year as with renting. 

* Owning the building your business is housed in provides you with stability, predictability, consistency, independence and long-term wealth.
 
* Financing closing and other soft costs (appraisal fees, etc.) with a 504 loan helps keep out-of-pocket expenses to a true 10% minimum when business owners make the decision to purchase commercial property and only want to spend the minimum amount of cash necessary.

* No balloon payments, calls or negative loan covenants enable borrowers to have more control, more peace of mind and less lender micro-management.

* Closing in 30-45 days allows business owners to take possession of their new asset and start reaping the advantages as soon as possible.

* Working with a 504 Loan Specialist like MCG, helps make the experience of buying and refinancing commercial real estate simple and hassle-free.

* Future sales of properties financed by 504 loans benefit by having the availability of assumable mortgages at today's historically low interest rates.

* 504 loans can be originated without disrupting your existing banking relationship because some 504 lenders do not require other banking products or services in conjunction with their 504 loans.

* Small-business owners now have the benefit of refinancing their existing commercial mortgages that are due to expire, into a fixed, low interest, long-term commercial mortgage. Even if your property has lost value or you owe more than the property is worth, we may be able to help. 

Contact us today!