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
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Typical 504 Financing Structure
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Project
Costs |
Source
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Lien
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Funding
Limits |
Rate
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Term
Real Estate |
Term
Equipment |
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50%
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Financial
Institution |
1st
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No Limit
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Market
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10 Years or
Longer |
7 Years or
Longer |
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40%
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504
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2nd
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Min:$50,000
Max: $5,000,000-5,500,000
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Fixed
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10, 20
or 25 Years
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10 Years
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10%
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Borrower
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Contact PPRDC for more information.
