Capnet Solutions

The SBA 504 Loan Program is a U.S. Small Business Administration (SBA) initiative designed to help small businesses acquire long-term, fixed-rate financing for major assets like real estate or equipment. Here's a breakdown of its key features:

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Key Features About the SBA 504 LOAN:
Purpose:

Purchase land, buildings, or equipment.

Construct or renovate facilities.

Refinance debt in connection with expansion.

Loan Structure:

50%: Provided by a traditional lender (e.g., bank).

40%: Covered by a Certified Development Company (CDC), backed by the SBA.

10%: Contributed by the borrower as a down payment.

Loan Terms:

Real Estate: Up to 25 years.

Equipment: Up to 10 years.

Fixed interest rates.

Eligibility:

For-profit small businesses.

Net worth under $15 million.

Average net income under $5 million after taxes for the past two years.

Must use at least 51% of the property for business operations.

Loan Limits:

Maximum SBA loan: $5 million.

Higher limits for certain energy-efficient or manufacturing projects.

Use of Funds:

Purchase or renovate owner-occupied commercial real estate.

Buy long-term machinery or equipment.

Refinance existing debt under specific conditions.

Advantages:

Low down payment (10%).

Long repayment terms.

Fixed interest rates.

Preserves working capital.

Application Process:

Work with a CDC and a traditional lender.

Submit financial documents, business plans, and project details.

Undergo SBA review and approval.

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Benefits:
Low down payment (10%).

Long-term fixed rates (up to 25 years for real estate, 10 years for equipment).

Lower interest rates than conventional loans.

Preserves cash flow for operations.

No balloon payments.

Supports job creation and energy-efficient projects.

Allows debt refinancing.

Limitations:
Strict eligibility (net worth < 15M,netincome

Call now to connect with business.

Key employee/ Manager business purchase program.

O% Borrower injection for manager buying the business.

No prepayment penalty.

SBA loan program

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