SBA 504 Loan

An SBA 504 Loan is a financing option designed to help small businesses fund large fixed assets like real estate and equipment. It combines a loan from a private lender with a loan backed by the Small Business Administration (SBA). Typically, the business covers around 10% of the project cost, the lender finances about 50%, and the SBA provides the remaining 40%. This structure often results in lower down payments and favorable long-term interest rates, making it easier for small businesses to grow and secure essential assets while managing costs effectively.