The Best Kept Secret In Commercial Loans

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The US Small Business Administration (SBA) offers a special loan program for small business owners. Keeping in pace with the modern technology and the need for a consumer based business solution, the SBA now offers great user friendly services to all small business owner who want to actually develop their business for improved gains.

The SBA has set aside a nearly $24 billion budget for its SBA 504 loans which is made use of for this one purpose alone and that is to serve and help small business concerns. These dynamic loans and many people are yet to be aware of its value because of faulty or outdated information that is doing its circle among the knowledgeable lenders.

Slowly but steadily entrepreneurs like brokers, franchisers and accountants are placing their trust on the 504 loans and they are now aware that this loan is designed just in time to suit their needs in the marketplace. Compared to any private sector financiers the 504 loans are much better in the way that they offer long term, below market and fixed financing rates. These loans are highly beneficial and least expensive. Long term mortgage plans are for 25 years and SBA bond has also not increased in the last 20 years.

In order to waiver the balloon payments and loan fees online conventional methods are used. Last year alone nearly $14 billion was forwarded as capital investment for nearly 9,720 small businesses all over the US. These loans also created jobs of about 112,000 as the small business owners invested in the equity savings. 504 loans provide cash flow sensitive lending and capital preservation, which directly helps the small business owners to expand their business more quickly.

The state federal department is in charge of the 504 loans and it is one of the highly ranked domestic programs used for economic development and the growth of its funds is increasing at 22 % a year since 2000. There is no limit or cp to the lending amount for these loans and non public businesses running for profit alone are granted these loans. There however three financial standards set for the loan qualification of small business concerns.

Any business concern, whose net worth in under $7 million is qualified for these loans. The operating net income for the two previous months must be an average less than $2.5 million every year. The third qualification criteria are that the borrower should not have liquid non retirement assets more than the amount to be financed. Based on these qualification specifications nearly 98% businesses in Florida have been qualified for these loans.

Anyone with franchising license or a track record can apply and get qualified for the loans. Even service professionals like the doctors, accountants and lawyers etc also apply for the 504 loans. The terms and condition are easy and uncomplicated and every small business man should first consider applying for these 504 loans before setting eyes on other private loans which are costlier and more complicated.

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