Whether you are starting a business from the ground up, or improving on what you already have, Small Business Administration (SBA) 504 loans can be ideal to help you grow your business. These loans are a cooperation between the SBA, a commercial lender, and you. You benefit because the program allows for less capital investment from you, with loan financing or refinancing at lower, long-term, fixed rates.
SomerCor helps you obtain the SBA 504 loan, which provides financing or refinancing for up to $5.5 million of your overall loan, no matter the scope of the project–as much as 90% of the total project cost (see the pie charts below).
May 2019 SBA 504 Debenture Rates
25 Year 4.39% | 20 Year 4.26% | 10 Year 4.30% | REFI +0.04%
ELIGIBLE USES
- Purchase commercial real estate
- Build or renovate commercial property
- Buy equipment, machinery and fixtures
- Refinance debt for commercial property and equipment
- Pay eligible soft costs and professional fees
BENEFITS TO YOU
- Lower down payment
- Up to 90% financing
- Long-term, below-market fixed interest rates
- Refinance with potential 20% cash-out
- Predictable monthly payments
- No balloon payments
REQUIREMENTS
- Owner-occupied commercial real estate in Illinois
- At least 51% applicant occupancy (60% for new construction)
- For-profit business
- Under $15 million in tangible net worth
- Prior 2 years average after-tax net income under $5 million
- Able to meet the down-payment requirement
- Good credit history
TYPES OF BUSINESSES
- Manufacturing, industrial and commercial
- Hotels, gas stations and storage facilities
- Business and medical office buildings
- Most franchises
Business in mixed or single-use building
New business or single-use building
New business in single-use building
Process
GET STARTED
504 SBA Personal Finance Statement
504 SomerCor Loan Application Checklist
504 Flyer
FAQs
Questions? Reach out to us!
Reach out to a loan originator today if you have any questions or are ready to start the SBA 504 process.
Brian Comiskey
Mike Utterback
Paul Jastrzebski
