Thursday, October 14, 2010

SBA 504 Small Business Loans for commercial real estate

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

1 comment:

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