SBA 504
If you are thinking about increasing the value of your business by acquiring a fixed asset, the SBA 504 program is the right program for you. The SBA 504 program provides up to 90% financing for property that is at least 51% owner-occupied for acquisitions, or that is at least 67% owner-occupied for new construction. For start-up businesses, or special-use property, financing is typically limited between 80% and 85% loan to value.
MetroPacific Bank, in this program provides 50% of the project financing in a 1st lien position. A government licensed agency (called a Certified Development Company or “CDC”) provides the remaining 30% - 40% financing in a 2nd lien position.
The key advantage to this program is that the CDC financing is:
- 20 year fixed interest rate
- Below market interest rates
- No balloon payments – loan is fully amortized
Up to 10%/year can be paid down without penalty Furthermore, since MetroPacific Bank offers a 50% loan to value on the 1st deed position, we can also offer very competitive financing options depending upon your needs and the type of property that is being purchased or constructed.
To visit the Small Business Association website Click Here