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SBA 504 LOANS

COMMERCIAL REAL ESTATE  |  EQUIPMENT  |  REFINANCE

 

25-YR FIXED RATE

2.97%

20-YR FIXED RATE

2.86%

10-YR FIXED RATE

2.67%

REFINANCE RATE

+0.0348%

empowering economic growth

504 loan program

Lender Benefits

  • Reduced lending exposure with 50% loan-to-value
  • Manages commercial real estate concentration issues
  • Opens up lending availability
  • Maximizes middle market lending
  • High size limits and business size caps
  • Preserves working capital, which keeps cash in deposit accounts
  • Unique marketing opportunity
  • Finances heavy machinery and equipment
  • Attracts new borrowers
  • We are your partner, not your competitor…you keep your clients
  • The 504 Loan Program can be used multiple times

We are not your competitor…we’re your partner!  As the largest 504 Lender in Illinois, we partner with hundreds of banks on commercial loans ranging from $200,000 to over $5 million.  We’ll coordinate the entire 504 Loan process and work to ensure everything goes smoothly for your client.

Quick Links for Lenders

Interest Rate History

Loan Calculator

504 vs 7a

Quick Qualifiers

Forms

Project-Specific Solutions

EXPANSIONS

Equipment Purchases
Building Acquisitions
Land Purchases
New Construction
Leasehold Improvements

HOW THE 504 HELPS

Long-term fixed rates
Predictable payments
No future balloons
Low down payments

REFINANCING

Real Estate Loans
Lines of Credit
Consolidate Multiple Loans
Obtain Working Capital
Cash-Out Available

HOW THE 504 HELPS

Eliminates balloon payments
Fully amortized
Existing equity = down payment
Can provide a cash out option

GREEN ENERGY

New Builds w/ Sustainable Energy
Energy Efficient Upgrades
Energy Generating Equipment
Reduction of energy consumption by 10%
Increased use of sustainable design

HOW THE 504 HELPS

Removes $ limit on 504 portion
Borrowers can take multiple loans
Slashes the bank’s risk to 50%
Up to $5.5 million per project

fAQ’S

What are some key points for Lenders?

  • Bank provides interim financing and sets the interim interest rate
  • Bank’s term must be at least 10-years with Growth Corp’s 20- and 25-year bonds.  And no less than 7 years with a 10-year bond
  • Bank gets first lien position
  • Advance is up to 95% of the appraised value on real estate – (5% variance)
  • Bank is free to adjust the rate on the permanent loan at any time
  • The economic life of the asset to be financed needs to meet or exceed the loan term.
  • The size standards for businesses are:  a tangible net worth of less than $15 million and profits (after taxes) of less than $5 million (including affiliates)

Can 504 Loans include soft costs?

Yes. Soft costs (e.g. appraisals, environmental, construction interest, closing costs, etc.) can be financed into the 504 loan, which allows small businesses to preserve working capital.

Who is eligible for the 504?

  • Be operating a for-profit business
  • Be organized as a corporation, sole proprietorship, partnership, LLC, etc.
  • Be located in the U.S.
  • Have a tangible net worth of less than $15 million and profit after taxes of less than $5 million (including affiliates)
  • Have a successful track record and growth potential
  • Occupy majority of project property (or owner-occupied property)

Projects that qualify must, according to SBA guidelines, promote economic development, which generally means the creation or retention of jobs.  Overall, most small businesses will qualify!

What are the collateral requirements?

  • The 504 loan is secured with a subordinate lien on all project assets.
  • The 504 loan must have a security interest in all project assets.
  • Existing liens are recognized for building expansions and renovations, but may also be refinanced with a 504.
  • Personal guarantees of all principals owning more than 20% of the company are required.
  • If the business is a start-up, or the asset being financed is considered single-purpose, or the credit is unusually risky, additional collateral may be required.
  • Key man life insurance is typically required unless there is a strong management succession plan.
  • Adequacy of collateral is a credit decision – additional collateral can be required by Growth Corp or SBA.

Now Available!  Simultaneous Closings…

Growth Corp has expanded its service offering to be able to provide simultaneous closings between the bank’s financing and the 504 financing.

  • Expedites funding
  • Straight acquisitions or deft refi only
  • 504 docs signed at bank closing
  • Funding is the 7th of every month

Growth Corp is the top CDC in Illinois, the largest 504 Lender in Chicago and a top ten 504 Lender Nationwide, but we're still just a small, focused team working together every day to make the 504 process the best it can be.

We know that when it comes to 504 loans, it's about much more than just getting an approval.  It's the ease-of-mind that comes from knowing Growth Corp's team has their finger on the pulse of the process from application to funding and even beyond into long-term servicing. It's knowing you will be informed every step of the way by the point-person responsible for overseeing the closing of your loan. It's knowing that, given Growth Corp's extremely low turn-over, you'll have the same experienced team members continuing to serve you year-after-year.

SBA recognized Growth Corp as an Accredited Lender after a thorough review of its policies, procedures and prior performance. The prestigious ALP status grants Growth Corp increased authority to process and close 504 loans, which results in an expedited process for both borrowers and lending partners.  In addition, under the SBA 504 Express Loan Program for ALP Lenders, Growth Corp will soon be granted the authority to approve, authorize, close and service SBA 504 loans of $500,000 or less under the recent COVID-19 relief legislation (pending implementation by SBA).

Quality, accuracy and quick turn-around times are just some of the reasons why Growth Corp is the top CDC in Illinois, the largest 504 Lender in Chicago and a top ten 504 Lender nationwide.  But, remember, we're just a small team working together every day to make the 504 Loan process the best it can be.

SBA 504 LOANS

How Will You Grow Your Business?

877-BEST 504

www.GrowthCorp.com

A Non-Profit Organization Focused Exclusively on Small Businesses

By using this website, you understand that Growth Corp is good, but not perfect (although we do try!). Therefore, it is possible that you may find information on this site that is no longer accurate.  Links, images, downloads, pages and blog posts may inadvertently contain information that has been superseded over the years.  You also understand that we aren’t giving any legal, tax, or financial advice.  So, while we hope our site makes you love 504 Loans as much as we do, the content herein is for informational purposes only.