sba 504 loan program - somercor

THE BENEFITS OF THE SBA 504 PROGRAM SBA 504 Loan Program FINANCING STRUCTURE 10% equity down, up to 90% financing For commercial real estate, equipment, renovaons/ construcon Long term (10, 20, or 25 year fixed rates) Most projects are between $300,000 to $5 million SBA 504 Fixed Interest Rate for January 2022: ELIGIBLE PROJECTS Owner-occupied real estate (25, 20 year fixed rate) Machinery & equipment (10 year term/fixed rate) Soﬅ costs 25-Year 3.21% 20-Year 3.07% Convenonal Financing The 504 Advantage 75% Conventional Lender 25% Borrower Contribution 10% Borrower Contribution 50% Third Party Loan 40% SBA 504 Loan Up to 90% Financing Well Below Market all-in on purchases Rates include monthly servicing fees to CDC, SBA, and central servicing agent; based on SBA FY22 fees. The SBA 504 loan program is designed to assist America’s small businesses for the acquision of commercial real estate and heavy machinery/equipment. Today, the SBA 504 loan program can also be used to refinance certain qualifying fixed-asset debt, providing an addional opportunity for small businesses to take advantage of the long-term, fixed-rate financing of the program. It is truly one of the best financing opons for small business owners today. SBA 504 LOAN A C C R E D I T E D L E N D E R P R O G R A M Contact SomerCor at 312.360.3300 [email protected] | www.somercor.com | 601 S. LaSalle St., Suite 510 | Chicago, IL 60605 Margaret Griffin mgriffi[email protected] Elisabeth Williams [email protected] Eric Bacon [email protected] Brian Comiskey, CPA [email protected]

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THE BENEFITS OF THE SBA 504 PROGRAM

SBA 504 Loan Program

FINANCING STRUCTURE

10% equity down, up to 90% financingFor commercial real estate, equipment, renovations/ constructionLong term (10, 20, or 25 year fixed rates)Most projects are between $300,000 to $5 million

SBA 504 Fixed Interest Rate for January 2022:

ELIGIBLE PROJECTS

Owner-occupied real estate (25, 20 year fixed rate)Machinery & equipment (10 year term/fixed rate)Soft costs

25-Year 3.21%20-Year 3.07%

Conventional Financing The 504 Advantage

75%Conventional Lender

25%Borrower Contribution

10%BorrowerContribution

50%Third Party Loan

40%SBA 504 Loan

Up to 90%Financing

Well BelowMarket

all-in on purchases

Rates include monthly servicing fees to CDC, SBA, and central servicing agent; based on SBA FY22 fees.

The SBA 504 loan program is designed to assist America’s small businesses for the acquisition of commercial real estate and heavy machinery/equipment. Today, the SBA 504 loan program can also be used to refinance certain qualifying fixed-asset debt, providing an additional opportunity for small businesses to take advantage of the long-term, fixed-rate financing of the program. It is truly one of the best financing options for small business owners today.

SBA 504 LOAN

ACCREDITED

NDER PROGRA

Contact SomerCor at 312.360.3300

[email protected] | www.somercor.com | 601 S. LaSalle St., Suite 510 | Chicago, IL 60605

Margaret Griffin [email protected]

Elisabeth Williams [email protected]

Eric Bacon [email protected]

Brian Comiskey, CPA [email protected]

U.S. Small Business Administration...SBA 504 Loan Program •The 504 Loan Program provides approved small businesses with long-term, fixed-rate financing used to acquire fixed assets

Entrepreneur Academy: SBA 504 & 7(a) Loan Programs & … · Religion Political ... SBA wires funds to bank after debenture is sold – usually within 60 days after closing – to

2016 Industry Update...• SBA 7(a) maximum loan size ‐$5,000,000 • SBA 504 maximum loan size ‐$12,500,000 • Size limitations – Most businesses qualify • Net profit < $5MM