What is the Small Business Administration 504 Program?

The SBA 504 Program is designed to help small to mid-sized businesses purchase real estate faster and easier. Benefits of a 504 Program commercial loan include:

  • less paperwork;
  • quicker closing;
  • less money down (100% financing is a possible option);
  • longer repayment terms;
  • no balloon payments.

To qualify, the borrower(s) must occupy at least half of the commercial property; if it is a construction loan, borrowers must occupy at least 60% of the property. Ask your commercial mortgage lender if the SBA 504 program is right for you.

 

SBA 504 Green-Friendly Incentives
If you plan to turn your commercial building into an energy-saving facility, ask your lender about SBA’s 504 program, which offers incentives for a building and/or renovation that:

  • lowers energy costs at least 10%;
  • is an energy-producing facility;
  • is a green or non-green manufacturing facility.

With the 504 program, "green" businesses that incorporate the use of alternative or renewable energy are also eligible to receive tax incentives.

 

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