The Official Blog of the SBA 504 Experts

504 Loan Blog

Small Business Commercial Finance Update for April 2014
  • more-shares
    • Save on Delicious

April 2014 | Commercial Finance Update

We haven’t posted an update like this in a couple months because we’ve been so busy closing commercial loans like the one you’ll read about in this April 2014 Commercial Finance Update. It was a $12 million project to fund the purchase of a 428,867 square foot industrial facility in Bensalem, Pennsylvania, and our client only had to put down 10% of the total project cost (keep reading for more details). Also, the 20-year fixed rate on our loan program has dropped to 5.18%, and you’ll see what that means in terms of monthly payments in the Structure & Rate section. Without any further ado, here’s this month’s update (click the image to view a printable PDF):

Commercial Finance Update | Download, Save, Print


» Commercial real estate financing for owners of small and mid-sized businesses.
» Preserves more capital with up to 90% loan-to-cost financing of total project costs up to $15MM (including soft and closing costs).
» Less impact on cash flow with terms of up to 30 years for owner-user commercial real estate.
» No short-term balloon payments or restrictive covenants.
» Below-market, long-term, fixed interest rates.
» Get fast answers: 24-hour pre-approvals, 5-day commitments, and 45-day closes.
» Eligible properties include Office, Industrial, Medical, Flex, Daycare, Retail, Flagged Hotel, Restaurants, and Self-Storage Facilities.


» $10MM Sample Total Project Cost
» $5MM // 1st mortgage (5-year reset; 30-year amortization; 6.00% interest rate)
» $4MM // 2nd mortgage (20-year fixed; 20-year amortization; 5.18% interest rate)
» $1MM // 10% equity (down payment)
» Net Effective Interest Rate: 5.64%
» Approx. Monthly Payment: $59,013
» *Rates and estimates are subject to change.
Get customized loan calculations with our SmartChoice Commercial Loan Calculator for iOS and Android devices


» 90% Loan-to-Cost Financing (10% Equity)
» Total Project Cost: $12,094,000
» 428,867 sf Industrial Facility (Acquisition)
» Bensalem, PA

T.C. Millwork, Inc. (TCM) offers its customers turnkey solutions in fixture display products from fixture design and manufacturing to distribution and installation. It began in co-owner Dennis Kubach’s home with three employees and has grown into a multi-million dollar company. As TCM has grown, it has utilized several locations for its design, manufacturing and warehouse/distribution services. The property financed by Mercantile allows the company to consolidate its operations into one facility and become more efficient in the process. Choosing a SmartChoice Commercial Loan allowed TCM to maximize their capital and maintain stronger cash flows than ordinary financing would have allowed. Go to to read more about TCM and their innovative SMARTWALL® display system.


On April 1st, we launched, a webapp that allows small business owners to apply for an SBA 504 (aka SmartChoice®) loan using touchscreen and biometric technology. It was an April Fool’s joke, but our application process really is extremely simple (just not as simple as scanning a thumbprint to access NSA databases). We only need seven basic documents to start our process. Go to and click the “Download PDF” button to get our Pre-Approval Application.

If you have questions about how we help small business owners purchase, construct, and renovate their commercial facilities with as little as 10% down and below-market, long-term, fixed interest rates, call us at 1-866-622-4504 today, or email us at

– Your 504 Experts

Tags: ,

No Comments

Leave a Reply

Your email address will not be published. All fields required.

Back to all Entries