We are hoping
Congress grants an extension of this commercial loan product.
The SBA 504 was
established to offer small businesses access to long-term fixed asset financing
at a low interest rate to encourage small business growth in our declining
economy it was suppose to be temporary. However I would as well as many others
in our industry like to see this loan product continue, we are not out of the
woods yet.
The benefits to the
business owner are savings with a lower interest rate but also if
there is more than 10% equity they can get working capital for eligible
business expenses. Growing our economy is crucial and small business growth is key to jobs. The 50 million in SBA504 loans as of Feb 2012 created over 2 million jobs. That is growth we need to continue. Here are some basic guidelines for qualifying.
- Income restrictions due apply; net worth cannot be more than $15 million and average net income of $5 million or less after federal income taxes for the preceding two years from application
- The small business must be occupied at least 51% of the property at the time of application
- The property must have been acquired at least two years prior to application
- The loan must be current and no late payment of 30 day or more in the last 12 months
- Property is based on current appraised value
- Up to 90% of current appraised value may be financed
- No Nonprofits are allowed under this program
- If you want more information about the SBA 504 loan products go to;
OR just call me!
Thank you for
stopping by my blog, leave your comments and ideas they are welcomed and
encouraged! Follow my blog by clicking on the follow this blog to your right.
Roxy Redenbaugh
ACMC Loan Consultant
Branch Manager
NMLS #269926
808-637-0011
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