SBA 504 Loan Financing
A SBA 504 loan is suitable for commercial real estate purchases above $350,000 and for refinancing of up to 90 percent of the current appraised value of your commercial property. They can be used for real estate purchases, refinancing or construction projects.
How does our SBA 504 Loan process work?
We offer a digital application process combined with personalized 1-on-1 lending services. To begin, simply submit your inquiry using the form below. Your information is sent directly to our team. Once received, we’ll email you application information and a team member will call you to discuss your equipment financing needs.
How can I use SBA 504 funds?
For Purchase and Construction projects:
- Existing buildings
- New facilities
- Machinery and equipment
For Improvement and Modernization projects:
- Existing facilities
- Streets and Utilities
- Parking lots and Landscaping
ABOUT SBA 504 LOANS
504 LOAN FEATURES
- SBA 504 loans are suitable for commercial real estate loans of $350,000 and above.
- SBA 504 conserves your working capital by requiring only a 10 percent borrower contribution.2
- If you do not qualify for conventional financing, the SBA-backed 504 loan may be right for you.
- SBA loans are guaranteed by the U.S. Small Business Administration, a government agency that offers financial programs to small businesses.
- Heritage Bank is a preferred lender for SBA.
SBA 504 Loan ELIGIBILITY
To be eligible for a 504 Loan, your business must:
- Operate as a for-profit company in the United States or its possessions
- Have a tangible net worth of less than $15 million
- Have an average net income of less than $5 million after federal income taxes for the two years preceding your application
- Other general eligibility standards include falling within SBA size guidelines, having qualified management expertise, a feasible business plan, good character and the ability to repay the loan.
Loans cannot be made to businesses engaged in nonprofit, passive, or speculative activities. For additional information on eligibility criteria and loan application requirements, small businesses and lenders are encouraged to contact a Certified Development Company in their area.
HOW CAN I USE A 504 LOAN?
A 504 loan can be used for a range of assets that promote business growth and job creation. These include the purchase or construction of:
- Existing buildings or land
- New facilities
- Long-term machinery and equipment
Or the improvement or modernization of:
- Land, streets, utilities, parking lots and landscaping
- Existing facilities
A 504 loan cannot be used for:
- Working capital or inventory
- Consolidating, repaying or refinancing debt
- Speculation or investment in rental real estate
HOW DO I PAY BACK MY 504 LOAN?
Repayment Terms, Interest Rates, and Fees
Loan repayment terms vary according to several factors:
Maturity terms available:
- Pegged to an increment above the current market rate for 5-year and 10-year U.S. Treasury issues
- Totals approximately 3 % of the debt, rate may be financed with the loan
Why Choose Heritage Bank?
- Dedicated Support: Work directly with a dedicated Heritage Bank Commercial Relationship Manager throughout your loan process.
- Hassle-Free Lending: You don’t want squeezed into a loan that isn’t right for your business, that’s why we provide pressure free lending services. Get answers, check rates and more, on your own terms.
- Fast Decisions: Our simple application process helps you quickly submit everything we need so you can get a decision back sooner.
- Heritage Bank does not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.
- Startup and special-purpose properties may require an additional contribution from the borrower.