What is an SBA 504 Loan
The SBA 504 loan is typically for the small business owner who would like to expand his or her business. The 504 loan is designed for business concerns to borrow against fixed assets. This is the perfect loan for a company to receive for expansion of a manufacturing facility or a land purchase that will be used for job growth.
What is an SBA loan? | Who would benefit?
The SBA is looking for minorities and rural small business owners who would like to increase competition and productivity. The SBA 504 loan goals are to develop and expand business districts, and to add stability in rural job markets.
The SBA is giving preference to disabled veterans, rural areas and the development of economically disadvantage areas hard hit by the economic downturn in our economy.
This loan would provide a long term fixed rate, for up to 20 years, on fixed assets that its financing would enable the small business to purchase. The guarantee of the principal owner is also a requirement. Assets that will be purchased though the financing will also be used for collateral.