REALTORS | Cash Hurdles Can Be Overcome With 504 Loans

When cash is the biggest obstacle to a real estate or development deal, it’s time to tell your business client about the 504 Loan Program.

Businesses with good track records and promising growth potential can qualify for low down payment 504 loans if their expansion plans call for purchasing and occupying real estate.

A 504 Loan package offers your client key financial advantages:

  • low down payment
  • below-market fixed rate
  • long term

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