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
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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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20 Years
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10 Years
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10%
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Borrower
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