Construction & Real Estate

Authors:

Michael L. Ostrowsky, Lindsay A. Van Houten; Bressler, Amery & Ross, P.C. (New Jersey, USA)

The Small Business Administration (SBA) 504 Loan Program provides an alternative to conventional financing for small businesses that may have issues qualifying for a traditional loan. SBA 504 Loans provide long-term financing for the acquisition or refinance of major fixed assets, such as owner-occupied real estate and long-term machinery and equipment. Though a slightly more involved and complex process than a conventional loan, this program provides small businesses the opportunity to receive up to 90% financing from outside sources. There are three instrumental players to the SBA 504 Loans: the borrower, the lender and the certified development company (CDC). The typical structure of a SBA 504 loan is 10% down by the Borrower, 40% financing from the CDC and 50% financing from a certified Lender

Read the entire article.