SBA504

Use of Funds

Proceeds from SBA loans may be used for fixed asset projects such as: purchasing land and improvements, including existing buildings, grading, street improvements, utilities, parking lots and landscaping; construction of new facilities, or modernizing, renovating or converting existing facilities; or purchasing long-term machinery and equipment. Additionally the funds may be used for:

	Acquisition
	Expansion
	Refinance
	Business / Partner Buyout
	Working Capital

Max Funding Amounts

Up to $7 million ($10 million for manufacturing)

Interest Rates

Interest rates on SBA loans are at regular increments above the current market rate for five-year and 10-year U.S. Treasury issues. Maturities of 10 and 20 years are available.

Assumability

Yes

Pre-Payment Penalties

Declining Scale With up to 20% annual principal reduction allowances.

Collateral

Generally, the project assets being financed are used as collateral. Personal guaranties of the principal owners are also required.

Business Plans & Consulting
Entrepreneur Coaching
Business Finance
Commercial Real Estate Finance
Real Estate & Business Note Banking