October 22

SBA 504 vs 7a Comparison for Construction Projects

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There are more reasons that the SBA 504 and 7a loan is the smartest choice for business owners who are looking to construct, renovate, or expand their business.

Ninety-percent (90%) Loan-to-Cost Financing
We can provide up to ninety-percent (90%) financing of the total project cost, which includes the land, construction/renovations, soft costs and closing costs. Conventional commercial loans will require two to three times the equity (20-30% down), so with an SBA 504 Loan a small business owner can preserve more capital which they can use to grow their business.

Long-Term, Below-Market, Fixed Interest Rates
Variable interest rates doesn’t make sense when it comes to small business commercial property financing. The ability to get long-term (up to 25 years), below-market, fixed interest rates makes it possible for business owners to save on interest expenses.

Longer Loan Amortizations
Longer loan amortizations allow for smaller monthly payments, which have less impact on business cash flow.


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commercial loan, creative financing, mortgage, real estate, real estate investing


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