SBA loans are one of the best ways for small businesses to purchase or to make improvements to commercial buildings, by securing the needed funding for whatever you have in mind. There is a loan program which the Small Business Administration has, known as the 504 loan program, which was created especially for this purpose.
When you contact the SBA about obtaining SBA loans, they’ll be able to tell you about all the advantages of the 504 loan.
Long repayment term
The 504 loan is totally amortized over a period of 25 years, which makes all your loan payments more affordable. It will also help improve your cash flow, since you have lower monthly payments to make.
No balloon payments are necessary
With SBA loans, at the end of your payment period, you won’t have to pay any large sum of money to a bank or to the SBA. The 504 loan does not require any payment to be paid at the end of the loan term, so this will not be an issue for you.
Low down payment
With as little as 10% down, small business owners can purchase a building which will help your company grow and prosper. This is far less than you might expect to pay for a conventional loan, which might run as high as 45%. This will keep your cash reserve intact, so it can be used for other business purposes.
Fixed interest rate
When you take out a SBA loans, you can get locked into an interest rate which is well below the market rate, and it can be fixed at that same rate for the duration of your loan. This will provide you with peace of mind, knowing that fluctuating economic conditions will not impact your loan’s interest rate. That means your occupancy cost will not go up, and you can focus on other areas of your budgeting.
Buying property with Flex Capital
If there’s a piece of property you’ve had your eye on, but you lack the funding to make the purchase, we may be able to provide the needed financial assistance. Contact us at Flex Capital to see it there are some options which might work for you in securing that property.