Recently the Small Business Jobs Bill was passed resulting in changes to the Small Business Administration loans. These loans are very attractive allowing financing up to 90%. Certain procedures have to be followed to qualify for these loans but if you work with a qualified SBA loan professional, this program can be very attractive to companies looking to purchase industrial real estate. Here are some highlights of the program.
**SBA 504 Program Update resulting from the recently passed Small Business Jobs Bill**
Allocates $505 Million for the continuation of SBA Fee reductions under the American Recovery and Reinvestment Act.
Maximum SBA 504 Loan Amounts – The loan maximum on the SBA portion of financing
is permanently increased to $5 Million ($5.5 Million for small manufacturers and borrowers
meeting certain Energy Efficiency Public Policy goals). This means that SBA lenders
participate in projects up to $12,500,000 under the 50/40/10 structure.
Maximum Size limit increase – Maximum Corporate tangible Net Worth increases to
$15MM and two-year average net income after taxes increases to $5MM. This change will allow
the SBA 504 loan program to become a very viable option for Middle Market companies.
For more information on SBA please visit my real estate news page at http://www.industrialrealestateinfo.com/