Low Down Payments
Keep more cash in your business by only needing a 10% down payment
Fixed Interest Rates
Lock in a low rate for the life of your loan, so you know exactly what your payments will be
Long Repayment Terms
Spread out your payments over up to 25 years, making it easier on your cash flow
Support for Major Purchases
Whether you need a new office, warehouse or specialized equipment, this loan can help
SBA 504 loans are a great option for small business owners looking to grow by investing in long-term assets. Backed by the Small Business Administration (SBA), these loans provide affordable financing for major purchases like real estate, equipment, or renovation projects. If you’re looking to make a big move, an SBA 504 loan can help you do it without draining your cash flow.
SBA 504 loans are perfect for big, long-term investments that can take your business to the next level.
Unlike traditional bank loans, 504 loans feature more favorable terms, including lower interest rates and longer repayment periods. This makes them a popular choice for businesses that need significant capital investments.
According to the SBA
Your Business Must:
Operate as a for-profit company in the United States or its possessions
Have a tangible net worth of less than $15 million
Have an average net income of less than $5 million after federal income taxes for the two years preceding your application
Other general eligibility standards include falling within SBA size guidelines, having qualified management expertise, a feasible business plan, good character and the ability to repay the loan.
Loans cannot be made to business engaged in nonprofit, passive, or speculative activities. For additional information on eligibility criteria and loan application requirements, small businesses and lenders are encouraged to contact a certified development company in the area.
Your Financing Must:
Be used for a range of assets that promote business growth and job creation. These include the purchase or construction of:
Existing buildings or land
New facilities
Long-term machinery and equipment
Or the improvement of:
Land, streets, utilities, parking lots and landscaping
Existing facilities
Your Financing Cannot be used for:
Working capital or inventory
Consolidating, repaying or refinancing debt
Speculation or investment in rental real eastate
Eligibility Decision
If you are not eligible for any reason, check out our SBA 7(a) loan options.
Source: sba.gov
Loan Amounts
Minimum - $500,000
Maximum - Up to $5 million
Terms
Real Estate - Up to 25 years
Equipment - Up to 10 years
Interest Rate
Fixed rates available
Down Payment
10%
Source: sba.gov
FAQS
SBA Loans are generally easier to qualify for and have better terms for small businesses who don't have established business credit or have less than perfect credit.
Businesses must meet certain size standards and be located in the United States. They must also have a demonstrated need for the loan and be unable to obtain financing from other sources on reasonable terms.
BA 504 loans are perfect for big, long-term investments that can take your business to the next level. Here are a few ways you can use the funds:
- Buying commercial real estate for your business
- Renovating or upgrading your existing property
- Purchasing heavy machinery or equipment
- Building new facilities to expand your operations
The approval process can take several weeks or even months, depending on the complexity of your application and the lender's processing time.
Interest rates for 504 loans are typically lower than traditional bank loans. They are fixed rates.
The SBA guarantees up to 85% of the loan amount for loans up to $250,000.
For loans between $250,000 and $5 million, the guarantee is up to 75%
Yes, you typically need collateral for a 504 loan. This can include real estate or equipment.
Information sourced from sba.gov
HAF Business Associates provides commercial loans and business financing solutions. All loan programs are subject to approval based on applicant creditworthiness, property eligibility, and other factors. Loan terms, interest rates, and fees are subject to change without notice. This website is for informational purposes only and does not constitute a commitment to lend. HAF Business Associates is not responsible for any errors or omissions in the information provided. The availability of these products may vary based on individual qualifications and state regulations. All loan programs and terms are subject to change without notice. To ensure that you are receiving the most up-to-date and accurate information, please contact us directly. Privacy Policy