SBA 504 Loan Program
The SBA 504 Loan Program is a Federal Government Guarantee program designed to incentivize business owners to purchase commercial real estate to occupy their business.
Be sure to browse other episodes in the My SBA Loan Pro Podcast library for more in depth knowledge of the SBA 504 loan program.
A few notable highlights of the SBA 504 loan program include the following: Only a 10% cash down payment, low interest rates fixed up to 25 years, a favorable pre-payment penalty structure, permission to lease up to 49% of the usable square footage and the ability to finance tenant improvements, equipment and loan fees into the loan providing for maximum leverage.
This means business owners are able to fix their real estate costs year over year, be the landlord instead of the tenant and control an asset that generally increases in value, gains equity and is likely to outlive the business itself and its owners.
Moreover, the business owner is able to incorporate either the lease value or sale value of the subject property into their exit strategy when they are ready to sell the business or retire.
That’s why I believe it makes better financial sense for business owners to own commercial real estate to occupy their business even before owning their personal residence.
Do you currently lease your building and are interested in learning whether you qualify to own instead of rent? Contact ThinkSBA today by visiting our website at thinksba.com/ready to request your complimentary pre-qualification loan analysis. It only takes 48 hours and is free of charge with no obligation!
My SBA Loan Pro
The My SBA Loan Pro Podcast is hosted by Your SBA Loan Pro, Ryan Smith. In each episode Ryan provides valuable information and best practices regarding the SBA loan program.
Each episode is approximately one minute in length and addresses topics related specifically to SBA 7(a) and 504 loan programs to purchase real estate, acquire a business or franchise and obtain working capital.
You’re encouraged to listen and subscribe to ensure you’re notified each time a new episode is available. Ryan publishes a new episode weekly on Tuesday mornings, unless he’s kidnapped to a deserted island of course.