504 Capital Corporation

U nderstanding the advantages and drawbacks of Small Business Administration (SBA) loans is vital for small business owners looking for financial assistance. CDC SBA loans offer various benefits, including lower interest rates and a guarantee from the SBA, but they also come with specific criteria and considerations. What Are SBA Loans? To put it simply, SBA loans are not directly provided by the Small Business Administration but rather facilitated through SBA-approved lenders, such as banks and microlending institutions. The SBA's involvement offers a safety net for lenders because if you default on your loan, the SBA will reimburse the lender for a portion of the debt. This reduces the risk for lenders and increases the likelihood of small businesses obtaining funding. CDC SBA loans are flexible and can range from as low as $500 to as high as $5.5 million, covering various business expenses like working capital, equipment, and inventory. Additionally, the SBA sets limits on the

There is no doubt that Small Business Administration (SBA) and conventional bank loans are popular options for business owners who need short-term funding or need help paying for expensive equipment. An SBA 504 loan rates and a conventional loan feature lower interest rates, but they are fundamentally different.  The SBA loan provides a partial government guarantee, whereas a conventional loan does not. Therefore, SBA loans typically have a higher amount, a low-interest rate, and a longer repayment. A small business must understand that conventional and SBA loans are excellent lending options. As with both SBA and conventional business bank loans, these options are offered at a low cost and with flexible repayment terms. Here's a comparison of SBA 504 loan vs. conventional loan What is an SBA loan? Small business loans are government-guaranteed loans, and the Small Business Administration guarantees up to 85% of loans issued by approved lenders. As a result, the lender is at a mu

T here are so many commercial real estate loans on the market it can be difficult to choose which one to pursue. As a commercial real estate loan company in Virginia , North Carolina, and Maryland, we have seen our fair share of mistakes. Allow us to help you take the next step forward with a pre-layed plan and the documentation you need to be approved.  Top Commercial Real Estate Financing Mistakes to Avoid There are a variety of mistakes that businesses and business owners make that are detrimental to their commercial real estate financing success. In many cases, these mistakes can be easily avoided with a little bit of planning and forethought. To ensure you have the best chance at being approved for a business loan, here are a few tips to follow. Have A Business Plan The best, and number one mistake we see businesses make is not having a business plan. Lenders want to see that the money you are applying for will go to good use and that they will see a return on their investment. I

SBA loans have helped small businesses all across the country stay in business and remain open during the COVID-19 pandemic. SBA loans are here to stay, meaning you can apply and qualify for an SBA loan today. SBA loans are a great alternative to traditional loans. As an SBA CDC in Virginia and North Carolina , 504 Capital is here to explain the different types, benefits, and limitations of SBA loans. What are SBA Loans? SBA loans are small business loans that are given by certified development companies and backed by the government’s small business association. These loans can be used by small businesses looking to purchase fixed assets or establish operating capital. Even now, during the COVID-19 pandemic , SBA loans have helped many small businesses stay afloat and remain open. Different Types of SBA Loans There are three different types of SBA loans that small businesses can apply for. There are 7(a) loans, 504 loans, and microloans. SBA 7(a) loan amounts can reach up to $5 mil

Anyone who’s ever purchased property knows that it’s one of the bigger investments you’ll probably make. To lighten the financial load, is it possible to refinance the loan you took out to pay for it? The answer is yes! The SBA 504 refinance program is a loan restructuring system that lets borrowers refinance existing debt at lower than market rates. This is accomplished by offering lower fixed rate solutions rather than the adjustable systems with higher rates common to traditional bank loans. This allows business owners to both save and have the necessary funds to grow their businesses. The SBA developed the refinancing program in support of its mission to spark growth in local communities. They realize that being able to consolidate and pay off existing debt at a lower fixed rate has a far-reaching impact, not just for the business owner but also for the local economy. The SBA 504 refinance loan program can be used in several ways, including refinancing owner-occupied commercial re

The SBA’s 504 Debt Refinancing Program is a boon for any small business owners who need to lower their monthly debt payments and access the equity in their real estate holdings. Under this program, available through 504 Capital Corporation, an SBA 504 loan provider in Virginia , North Carolina , and Maryland , you can apply for below-market, fixed interest rate refinancing with repayment terms up to 25 years for up to 90% of the appraised value of commercial real estate property. Recently, revisions to the program were published in the Federal Register as an Interim Final Rule. These updated regulations significantly expand the scope of 504 loan debt refinancing programs to help small businesses with both recovery and growth. 504 debt refinancing offers two authorized options. First, if the project involves the expansion of the small business, any amount of existing indebtedness that does not exceed 50% of the project cost of the expansion may be refinanced and added to the project&#

A Small Business Administration (SBA) loan often ends up serving as a lifeline for small businesses. These loans offer the lowest rates and payments and the longest terms available on the market. Funds can be used for a wide variety of functions, including advertising, operating capital, hiring staff, buying equipment or buying/refinancing a commercial property. You may have been researching SBA lenders or small business loans in Maryland, North Carolina, and Virginia and still have questions about SBA loans. The most important takeaway should be that working with a reputable lender like 504 Capital Corporation is the best way to find a loan structure that’s the best fit for your business needs. Here are some facts you might not be aware of: SBA Loans Are Borrower Friendly In fact, the SBA program was created specifically to provide small businesses across America with more flexible and favorable terms than conventional lending. The organization is dedicated to assisting borrowers w

In response to the overwhelming challenges faced by small businesses across America, in March of 2021 the U.S. government announced a Coronavirus Stimulus Bill, which provided almost $350 billion in emergency relief funding to help small businesses stay afloat during the COVID-19 pandemic. This government assistance includes the Paycheck Protection Program, Economic Injury Disaster Loans (EIDL) , the Emergency Capital Investment Program, and Small BusinessTax Credit Programs. Your small business could receive a Economic Injury Disaster Loan (EIDL) of up to $2 million in funds. It differs from the requirements of regular 504 Loan in that this emergency capital can be used to meet financial obligations and operating expenses that could have been fulfilled had the disaster not occurred. These include fixed debts, payroll, and accounts payable. For information on the status of your economic injury disaster loan, contact SBA disaster customer service at 1-800-659-2955 (TTY/TDD: 1-800-877-83

If you are a small business owner, you may have many ideas to expand your business. But how to get funds for it? You may be thinking of availing loans from a commercial bank, but they are not flexible and can cause cash flow issues for your business. So, what can you do? Well, you can apply for SBA 504 loans. Why? SBA 504 loans are backed by the US Government and as SBA stands for Small Business Administration, they are designed to help small business owners specifically. What Are SBA 504 Loans? SBA 504 Loan is a government-supported loan for small businesses. It helps new and growing businesses acquire finance to expand, make capital improvements, and much more. These loans are issued by a Certified Development Company (CDC) and are overseen, authorized, and regulated by the SBA. But, can an SBA 504 loan be used to buy real estate? The answer is - Yes! 504 Capital Corporation is an SBA lender in Maryland and we let you buy real estate with SBA 504 loans. But there’s a requirement t

Virginia is the place to be for small business. According to the 2020 Small Business Profile by the U.S. Small Business Administration Office of Advocacy , Virginia has 766,826 small businesses, making up 99.5% of the total businesses in the commonwealth. That’s a lot of small businesses — and their success is no coincidence. There are many reasons why small business financing in Virginia is a smart choice for business owners and lenders alike. Business Insider recently reported that Virginia has the highest ratio of businesses start-ups to businesses collapses. For every business that closes, twice that amount opens. Benefits of Small Business Financing in Virginia Virginia boasts well-educated employment candidates and a fantastic business survival rate. If you are thinking of starting a small business or a lender looking to invest in small business financing in Virginia , the risk is low, and you will be satisfied knowing you are making a positive contribution to both the local and

If you are thinking of   starting a small business   in the United States, Virginia is one of the best places to start a business. Why? Virginia has ranked 1st on CNBC’s 2019 list of America’s Top States for Business. The state offers plenty of incentives for both startups and existing businesses. The GDP of Virginia says it all. It had a GDP of $552 billion in Q2 of 2019 which is roughly 2.6% of the total U.S. GDP. And there are a number of reasons why Virginia is the right choice to commence a business: The Government offers Tax credits for creating employment. Virginia has a well-educated employment pool and businesses survival rate. Benefits of high-speed internet because 70% of the world’s Internet traffic flows via data centers situated in Northern Virginia. Sole Proprietors don’t need a business license to start a business. Virginia is a major hub of data centers, agriculture, aerospace, technology, mining, and military. The corporate income tax rate has remained stable for near

SBA 504 Loan Rates, Requirements and Terms in North Carolina Considering the continuation of competitive interest rates, now is the time to learn more about the SBA CDC 504 loan program in North Carolina . It makes financial sense to start a business while locking down a current fixed rate as low as 2.7% for a 10-year loan, 2.99% for a 20-year or 3.04% for 25 years. Paying less interest, one of the many perks of the SBA 504 loan, will set you up for success and profitability. Small business borrowers can expect to have lower monthly payments and additional cash flow. SBA CDC 504 Loan Program in North Carolina So how do you apply for the SBA CDC loan program in North Carolina? You can locate a Certified Development Company in the North Carolina area by consulting a list of companies available on the SBA website and searchable by zip code. A CDC is eligible to offer loans in the state it was chartered. Once you find a CDC you’d like to work with, schedule an appointment to find out mor