WHY ARE 504 LOANS OF INTEREST TO COMMERCIAL LENDERS?

The 504 Loan Program can provide risk management advantages, provide fee and interest income, and attract or retain customers for participating lenders. As a participating lender your advantages can include:

  • Limiting your credit exposure to a single customer
  • Good collateral coverage for your retained portion of the loan
  • Low loan-to-value (LTV) ratio
  • First lien position
  • 504 loans receive consideration in CRA examinations
  • Facilitates liquidity management through an active secondary market
  • No SBA paperwork for you to complete
  • A competitive edge in the small business lending market
  • A portion of the project financing is fixed for the full term at below market rates

Click here to learn about the loan process.

Click here for Frequently Asked Questions.