The U.S. Small Business Administration is reiterating that low interest rates have opened opportunities for business owners interested in receiving funds. The 504 Loan program, designed for business growth and job creation, opens additional avenues of financing. The program is known to provide long-term financing to qualified small business owners.
With SBA low interest loans, businesses are finding it easier to refinance. The 20-year standard loan product has interest rate and service fee capped at 4.70 percent. There is also a 20 year re-financing loan for which the fee is 4.91 percent. It is good to get refinanced right now as rates so low do not come often.
The 504 Loan program pairs both SBA loans and private lender loans. Fifty percent is given by private lender and in exchange it receives first lien on 100 percent asset. The second lien comes from SBA that exceeds up-to 40 percent. The borrower also gives 10 to 20 percent down payment. The 504 small business financing makes available $5 million for ‘standard’ projects and $5.5 million for ‘green initiative’ and ‘manufacturer projects’.
The 504 program is meant to create and retain jobs. As the rates have fallen, lenders are taking more interest to join the program. Both banks and non-bank lenders are showing interest in Small Business financing under this program.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org