504 – Advantages
Current Rates:
10 year
3.77%
20 year
4.61%
Borrower Benefits
- 90% financing on most projects
- Below market rates
- 20 year fixed rate on real estate
- 10 year fixed rate on fixed equipment
- Improves cash flow
- Minimal out of pocket expenses
- Working capital preservation
- Fully amortizing 10 and 20 year loan
- Collateral limited to the asset financed allows other assets to remain free of liens
Lender Benefits
- 90% financing increases potential opportunities
- Strong collateral position with 1st lien
- Reduced risk with only 50% LTV
- Community Reinvestment Act credits on all 504 loans
- 9 month project look-back for properties in process
- Blended interest rate offered borrower
- Balance sheet management
Community Benefits
- 504 puts excess revenues back into the community
- 504 program strives to meet Public Policy Goals to enhance success
- 504 programs create one new job for every $65,000 funded
