Grow Your Business With An SBA 504 Loan

As a small business owner, it’s critical to have access to the capital required to not only sustain your operations but to also expand them. Unfortunately, many entrepreneurs quickly discover that the terms of traditional commercial lending programs are too restrictive (or too expensive) for their specific corporate needs. If you’re currently exploring finance options beyond conventional bank financing to grow your small business, you may want to consider an SBA 504 loan.

Know The Benefits Of A SBA 504 Loan Model

Designed explicitly to boost economic development and job creation for small businesses, an SBA 504 loan offers fixed-rate, long-term financing to acquire assets that expand or modernize current company operations. While an SBA 504 cannot be used as working capital or as a resource to refinance debt, it can be used to purchase:


  • Real estate
  • Equipment
  • Technology
Like many conventional lending models, SBA financing is generally offered through banks and other financial institutions. However, SBA programs are issued through lending corporations that also participate in the Small Business Administration loan guarantee program. Why is that important? Unlike conventional bank loans, should your business fold and you’re forced to default on repayment, the SBA promises to buy back a percentage of the loan from the bank.

Does Your Business Qualify For This Flexible Lending Option?

Are you eligible for SBA 504 financing? Business owners applying for this loan type must meet qualification requirements including:


  • Business must be a sole proprietorship, LLC, corporation, or partnership
  • Company must be for-profit and non-publicly traded
  • Organization must conduct business in the U.S. or its possessions
  • Ownership must include 51% U.S. citizens or registered aliens with a green card
  • Company’s tangible net worth may not exceed 15 million dollars
Finally, if the lessee is using the capital from the SBA 504 loan to acquire real estate, the company must occupy at least 51% of the total space to be bought.

SBA 504 Loans Provide Up To 90% Project Financing

One of the biggest benefits offered from this particular SBA lending model? Conventional bank loans often only cover 75-80% of expected project costs. However, the SBA 504 program typically finances up to 90% of the total project expenditures for a dynamic, agile lending solution well suited for a multitude of unique and diverse funding needs.

Want to hear more about optimizing access to mission-critical capital with an SBA 504 loan? Contact Avid Commercial today!

Yes, it’s Possible: Getting a Commercial Loan During COVID

The global pandemic has had a far-reaching impact on commercial lending across virtually every industry. Companies in multiple verticals are attempting to navigate through the continually evolving financial terrain, doing less with more to protect bottom lines and...

Is It Time To Consolidate Your Business Loans?

Small business owners often find themselves borrowing money to bridge a multitude of financial gaps, including: Cover temporary cash flow Fund corporate expansions Hire new employees Procure new equipment Some executives borrow as a short-term solution to build up...

Four Things to Consider When Purchasing A Commercial Investment Property

Commercial real estate can yield significant returns for landlords. However, like any other investment, there are certain risks involved when purchasing a business property. Knowing what to look for during the search process can help investors discern the opportunity...

Applying For a Business Loan? Avid Commercial Can Accelerate Your Company’s Access To Capital

Successfully running your business means having access to the cash reserves you need when you need them. Unfortunately, working with banks and traditional lenders can mean a long, drawn-out approval process. As a result, entrepreneurs across every industry often find...

Long-Term Loan Savings: What a .5% Interest Rate Decrease Could Save on the Life of Your Loan

Since 2015, U.S. interest rates have consistently increased, testing how (and if) the nation's economy could successful absorb each incremental raise. Apparently, we've officially reached our economic threshold; on July 31, 2019, the Federal Reserve cut America's...

You’ve Outgrown Your Commercial Property – Now What?

Most entrepreneurs launch their enterprises with visions of future growth. However, executives often don't have a tactical plan of how they'll accommodate the increase in employees, capital assets, and internal infrastructure when their operations do begin to expand....

Seven Best Practices to Build Your Business Credit

Establishing business credit can play a critical role in the health and longevity of your company. Some small- to mid-sized business owners assume that they can leverage their existing personal credit to make purchases for their organization. However, having a...

Borrowing Strategies To Fuel Your Corporate Operations

For business owners in every industry, securing funding right now can be tough. The financial challenges go beyond the current unpredictability of our economy and lukewarm market temperatures. Right now, many entrepreneurs are also struggling to navigate through...

Four Ways To Create A Dynamic Company Culture This Summer

Your company's corporate culture matters. A positive internal culture serves as a foundational cornerstone for an organization, setting the tone for employee morale, engagement, and productivity. Striking the right cultural chord with your staff may even impact your...

Power Fast Access to Capital with a SBA 7A Loan

Need to infuse your business with an influx of capital without pursuing a restrictive conventional bank loan? For many small businesses, an SBA 7A loan delivers an ideal corporate funding solution. Long-term, low-rate, and government approved, the SBA 7A program...