SBA Lending.com - Why SBA Lending, About Sba loans and Financing Fredericksbug VA

SBA 504 VS Conventional Mortgage

The SBA 504 program requires less money down. You can put as little as 10% down in the form of cash, seasoned equity in land, or a combination of the two on multi-use properties. If the property is special use OR the business is considered a start up the equity injection is 15%. If it is special use AND the business is considered a start up the equity injection is 20%.

Scenario	Injection Required
Established retail business is leasing and Wants to buy or construct a new location	10%
Established Assisted Living Facility is leasing And wants to buy or construct a new location	15% (Special Use)
Ground up construction for a Hotel	20% Special Use/Start Up)

	Conventional Bank Structure	SBA 504 Program
Loan to Value	Typically 75% or less	Up to 90%
Loan Term	Typically 5 or 10 years	20 - 25 years on 1st mortgage 20 years on 2nd mortgage
Amortization	Typically 20 years or less	Typically Blended at 23 years
Balloon or call Provision	Yes	No
Fees	Typically 1%	Typically 1% or less
Prepayment penalty	Yes	Yes
*Do I have* to move over my deposits?**	Yes	NO, you can bank wherever you like

SBA 504 Benefits:

Less of an injection requirement
Greater Flexibility on where you bank
No call Provisions
Lower interest rate
Longer fixed rate options

Quick Quote Step 1

Property State *

Type of Property *

Your Credit

Loan Amount *
Quick Quote Step 2

Property Value *

Loan Type

Is 51% or more of the sq. ft. of the space occupied by the owners’ business?

Yes No
Quick Quote Step 3

I am the

Kind of documentation will be provided

Email Address

Confirm Email Address
Quick Quote Step 4

First Name(optional)

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Quick Quote

Thank you for submitting the application, one of our loan officers will be in touch with you within 24 hours.

Feel free to call 800-710-6762 if your need is more urgent

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Stephen Phister

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