Advantages of the SBA 504 Loan Program

BUSINESS advantages:

  • Low down payment – just 10%. This increases to 15% if you have a new business or special purpose building, or to 20% if both conditions apply. This lets you preserve cash for working capital.
  • Low fixed rate for term of loan. Payments are affordable and predictable.
  • Long term loan which means a lower monthly payment. Terms for real estate loans can be 10 or 20 years. For equipment and/or machinery,  the loan term is 10 years.

LENDER advantages:

  • Montana Community Finance Corporation works with SBA to process the 504 loan.  You make your own credit decision and use your own documentation on your loan.
  • You retain all fee income on your loan, with no monthly fees to SBA.
  • You have a 1st lien position on the project property. The SBA 504 loan will be in a 2nd lien position.
  • Your collateral position is well secured with a 50% LTV.

COMMUNITY advantages:

  • Businesses create and/or retain jobs in your community!
  • Additional tax base for your county!