Are you a looking to finance a franchise location? Consider the SBA 504 loan – it is a great option for those purchasing real estate or updating or an existing franchise location to meet brand standards.
A franchise, while tied to a national or regional brand, is still a small business. It is up to the franchisee to provide the necessary capital and management to operate. And when it comes to financing the property purchase and buildout, entrepreneurs can opt to use an SBA 504 loan.
The SBA 504 program offers up to 90% financing with 10, 20 or 25-year terms available at below-market fixed interest rates – up to $5 million. Borrowers also enjoy predictable and lower monthly payments. This financing structure frees up working capital that would normally be designated for paying off loans, to instead be reinvested back into growing the business.
These loans also encourage conventional lenders, like banks, to increase their small business lending. The SBA does not lend money directly to small business owners but operates in tandem with traditional lenders and Certified Development Companies (CDCs), like SomerCor.
View the original article here and download the program flyer and connect with a member of SomerCor’s loan origination team today to learn more!
Margaret Griffin
EVP, Chief Lending Officer
312.360.3320
mgriffin@somercor.com
Eric Bacon
SVP, Loan Officer
312.360.3335
ebacon@somercor.com
Darin Gehrke
SVP, Loan Officer
217.793.1075
dgehrke@somercor.com
Elisabeth Williams
SVP, Loan Officer
312.360.3302
ewilliams@somercor.com