Approved to offer SBA loan products under SBA's Preferred Lender programs.
Need help expanding your business?
SBA 504 Loans provide financing for major fixed assets, like equipment or real estate. Borrow up to 90% of the total acquisition costs, plus other costs associated with necessary improvements to the property. Give us a call at 877-249-9980, email us, or tell us your information and we'll contact you to get started.
What Can An SBA 504 Loan Be Used For?
An SBA 504 loan can be used for:
- The purchase of land, including existing buildings.
- Property improvements, including utilities, parking lots and landscaping.
- The construction of new facilities or renovation of existing facilities.
- The purchase of long-term machinery and equipment.
A 504 Loan cannot be used for working capital or inventory, consolidating debt or investment in rental real estate.
How Do SBA 504 Loans Work?
The SBA 504 loan structure typically allows a customer to borrow 90% of the total acquisition costs of a property, plus other costs associated with necessary improvements to the property. Typically, FirstBank provides 50% of these total costs via a commercial real estate loan and the SBA provides a loan for 40% of total costs. The borrower is required to contribute the remaining 10% of total costs.
How Is An SBA 504 Loan Different From A Commercial Real Estate Loan?
There are several reasons why a borrower might choose to use an SBA 504 loan rather than a standard commercial real estate loan. Typically, standard commercial loans require the borrower to contribute 25% of the purchase price of the building, plus closing costs and the cost of equipment. An SBA 504 loan requires less cash towards the purchase, which increases the business' ability to buy the property. Additionally, the bank often lowers the interest rate when financing a smaller percentage of the purchase price.
I Still Have Questions.
Great! That's what we're here for - to help your business grow and become even more successful. We're happy to discuss if an SBA 504 loan is a good fit for your business or if you should go in another direction. Contact a loan officer today at
complete a quick form and we'll contact you when it's convenient.