CPA | Below Market Financing For Your Growth-Track Clients

In today’s tight credit market, small business owners value accountants who can steer them toward low-cost growth financing. Healthy businesses whose expansion plans call for the purchase and use of real estate or equipment can qualify for attractive long-term financing through the 504 Loan Program.

Here are the 504 advantages:

  • low down payment – preserves valuable working capital, increases return on equity
  • below-market, fixed rate – reduces the risk of rate fluctuations
  • long term  – better matches the productive life of the asset being financed

Typical 504 Financing Structure

Project
Costs
Source
Lien
Funding
Limits
Rate
Term
Real Estate
Term
Equipment

50%
Financial
Institution
1st
No Limit
Market
10 Years or
Longer
7 Years or
Longer
40%
504
2nd
Min:$50,000
Max: $5,000,000-5,500,000
Fixed
20 Years
10 Years
10%
Borrower

Contact PPRDC for more information.