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6 Reasons Why Utah Business Owners Are Choosing SBA 504 Loans to Facilitate Growth


The SBA 504 Loan Program in a Nutshell


The 504 Loan Program, a key player in the U.S. Small Business Administration's (SBA) loan programs, is helping small businesses in Utah hedge against inflation. These loans provide long-term, fixed-rate financing of up to $5 million to purchase, construct, or renovate commercial/industrial facilities, finance equipment, and refinance existing real estate debts.


 


The Demand for 504 Loans Has Increased in Recent Years Due to Several Reasons...


First, they offer competitive fixed interest rates for up to 25 years, along with lower equity requirements. This allows business owners to secure predictable, long-term financing and avoid variable rate loans.


Second, the loans require lower down payments, typically only 10%, and the rest is financed between a Certified Development Company (CDC) and the lender (bank or credit union) of the borrowers choice.


Third, owning the building that houses your business can be more cost-effective than renting, and there are long-term investment benefits, including tax advantages.


Fourth, fixed monthly expenses with no future balloon payments allow for easier budgeting and long-term planning.


Fifth, most for-profit businesses are eligible for 504 financing if they average less than $5 million in annual after-tax profits and $15 million in net worth.


Sixth, local Certified Development Companies (CDCs), such as Wasatch Business Finance, provide support and quality financing for fixed asset investments, helping to strengthen local businesses, revitalize neighborhoods, and support local economies.


 


Most Businesses Qualify and The 504 Loan Can Be Used in a Variety of Ways


Real Estate and Property Types that Qualify

  • Office

  • Restaurant

  • Industrial / Manufacturing

  • Hospitality

  • Warehouse

  • Assisted Living / Skilled Nursing

  • Retail

  • Industrial Equipment

  • Medical

  • Self Storage

SBA 504 Real Estate Loan Applications

  • Real Estate Purchase

  • Tenant Improvements

  • Real Estate Refinance

  • Soft / Closing Cost

  • Industrial Equipment Finance

  • Operating Capital

  • Furniture, Fixtures & Equipment

  • Business Expansion

SBA 504 Borrower Benefits

  • Low Down Payment of 10%

  • Low, 25-year Fixed Interest Rate

  • Flexible Underwriting Terms

  • Payment Stability

  • Preserve Your Working Capital

  • Include Soft Costs Such as Furniture, Fixtures & Fees

SBA 504 Loan Uses

  • Purchase a Building

  • Construct New Facilities

  • Renovate a Current Property

  • Purchase Heavy Machinery or Equipment

  • Refinance Commercial Mortgage Debt

  • Get Operating Capital, Cash-Out, Refinance


How SBA 504 Loans Are Structured...


SBA 504 Loan Structuring

SBA 504 loans for Utah businesses are structured around a shared financing model. The basic structure requires the borrower to provide a 10% down payment. The SBA directly finances 40%, and a third-party lender, usually a bank, will finance the remaining 50% of the project.


For More Information on the 504 Loan Program


For Utah businesses looking to grow during challenging economic times, an SBA 504 Loan is a solid option for achieving their goals. For more information on the details of the program, visit https://www.wasatchcdc.com/sba-504-loans or call 385-799-6700




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