The SBA 504 loan program offers small business owners affordable financing for buildings, machinery, and equipment. Working in cooperation with your bank, which provides a first mortgage for 50% of the project, Oregon Business Development will make a second mortgage loan for up to 40% of the project.
With financing available for up to 90% of the project cost, SBA 504 loans offer a down payment as low as 10%. This allows the business owner to conserve cash for working capital and retain liquidity to meet operating needs …Learn More
SBA 504 real estate loans provide 20-year, fixed rate, fully amortized financing on the SBA 504 portion of the loan package. This enables the small business owner to pay for a facility over the long term, avoid risky loan call provisions, and enjoy lower monthly payments …Learn More
The interest rate on the first mortgage will be attractive due to the bank’s low loan-to-value position. The interest rate on the SBA 504 second mortgage is fixed for the life of the loan and is usually below the market rate. The July 2015 SBA 504 rate is 4.96% …Learn More
SBA 504 loans can be used to finance the purchase of existing buildings, construction of new buildings, and most equipment, furnishings, and project soft costs. The program can be used by almost any small business, including new businesses (15% down payment required). Properties considered special use are also eligible with a 15% down payment …Learn More
A business owner can purchase and hold title to a building personally, in the name of the business, or through a holding company. This gives the small business owner the flexibility of several ownership options to maximize the tax benefits of real estate ownership …Learn More