How can SBA lenders in North Carolina help your business?

If you are short on the capital to make a big business purchase, loans are a great way to help your business grow and flourish. Small business loans from the Small Business Administration are a convenient and easy way to do this. Loan institutions such as 504 Capital—specializing in SBA CDC loans in North Carolina—can help your business grow by building capital.


Different Types of SBA Loans

Depending on the way you plan to use the loan, there are different SBA loans that are available for you to apply to. They include the 7(a) loan, a Microloan, or a CDC/504 loan.

  • The 7(a) loan is the most common type of SBA loan and offers financial help for businesses that meet certain criteria.
  • A Microloan is an SBA loan that provides small, short-term loans to small businesses.
  • The CDC/504 loan program provides financing to small businesses to purchase major fixed assets.
Each of these loans is provided through a designated lending institution located near you.

How a 504 Loan Can Help Your Business

A CDC/504 loan is one of the more limiting loans that the SBA offers; however, it can be incredibly beneficial for many small businesses. With help from an SBA lender in North Carolina, your small business can purchase real estate, purchase equipment, or even finance a construction project.

Purchase Real Estate

One of the ways you can use a CDC 504 loan is by purchasing real estate. Some of the ways this can help your business is by saving money on a down payment and offering longer finance terms. Unlike traditional financing for real estate, SBA 504 loans only require a 10% down payment for real estate purchases. Similarly, while traditional finance terms are 5 or ten years, a CDC 504 loan extended this to be a 20-year finance term. This gives you time to build capital and pay back the loan over an extended period of time.

Purchase Equipment

In addition to purchasing real estate, you can also purchase equipment and machinery for your business. There are a few stipulations including—the equipment has to have a ten-year economic life and you can’t purchase office equipment such as computers. Even with these requirements, a 504 loan for purchasing equipment is beneficial. In addition, your loan terms are extended from a 5-year loan term (with traditional financing) to a 10-year loan term!

Finance Construction Project

Another way that you can use a 504 loan is by financing a construction project. This includes building a new facility, renovating an existing building, and even property improvements (adding parking lot, connecting utilities, landscaping, etc.). In addition, unlike traditional construction loans, with a 504 CDC loan you are offered a lower interest rate (3-4% instead of 5-7%), and you are generally not required to provide collateral.

SBA 504 Lender in North Carolina

Are you ready to use a CDC/504 loan for your business? 504 Capital is an SBA lender in North Carolina. At 504 Capital Corporation, our mission is to help small businesses grow and become the best versions of themselves. We do this through our competitive interest rates and long-term financing options. We have helped many small businesses grow and become successful through the CDC/504 loan program, and we would be honored to help you too.

Ready to launch your business? Contact us today and see how we can help.
Location: Cap Trust, 4208 Six Forks Rd Tower, Suite 1000, Raleigh, NC 27609, USA

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