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504 Loan Blog

More Good News from the SBA 504 Experts…
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Last week, I reported that the conditions for owning commercial property just keep getting better. The 20-year fixed interest rate on SBA 504 loan projects has fallen to 4.93% – – the second-lowest monthly rate in the 24-year history of the program. Put that together with decreased commercial property values and all the inherent benefits of the SBA 504 loan program (as little as 10% down; longer terms; and long-term, below-market fixed interest rates), and you have a “perfect storm” for Smarter commercial property ownership.

I’m not the only one who’s recognized this amazing opportunity for owners of small and mid-sized businesses. I read an article on TheStreet.com earlier this week about the new low interest rate on SBA 504 loans. It quoted Jean Wojtowicz, Chair of the NADCO Board (the SBA 504 industry’s trade association) and Executive Director of Indiana Statewide Certified Development Company, as saying this:

“A commercial loan below 5% is an incredible rate for 20-year, fixed-rate money. When you consider the drop in the price of commercial real estate and the inventory currently on the market, small businesses have a real opportunity to expand or buy their first building right now.”

The article also said the greatest concentration of SBA 504 loans has been to physicians, dentists, veterinarians, lawyers, and accountants (though we’ve financed quite a few Clients outside of these professions . . . daycares, breweries, and Harley-Davidson dealerships, for instance). Chris Crawford (President of NADCO) had this to say:

“It’s not surprising that accountants and lawyers recognize the benefits of SBA 504 loans, but it’s gratifying to see so many professionals also realizing that owning their own building to fix their business occupancy costs is a very savvy financial move. More business owners would be wise to make similar investments. There is just no better deal available for the purchase of real estate or for expansion of existing facilities. I urge any business owner thinking about expanding to call their banker and ask about the SBA 504 program today.”

You can probably guess that I agree wholeheartedly with Jean and Chris on this. I would also urge you to call your banker and ask about the SBA 504 program today . . . but also call me, and see for yourself who’s better equipped to handle a specialized loan like the SBA 504. We’ve been humbled to receive the SBA’s “Financial Services Champion” Award for two of the past four years, and NADCO has also named us their “Banker of the Year.” I’m proud of the hard work my team has put in to deserve these honors, and our Clients will tell you that we’re more than capable of handling an SBA 504 loan for you or someone you know (we’re not known as “The SBA 504 Experts” for nothing). Call me at 1-866-622-4504 begin_of_the_skype_highlighting              1-866-622-4504      end_of_the_skype_highlighting or email me at ChrisHurn@MercantileCC.com today to find out if we’re the right lending partner for you. Our 24-hour Pre-Approval Process is quick and easy because we know how valuable your time is.

Thanks again for taking the time to read this blog, and also for leaving a comment below, if you’re so inclined.

Dedicated to Your Continued Success,

Chris

P.S. To read the full article at TheStreet.com, click here.

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6 Comments

  1. Braudis Lee Pegram says:

    You’re a great company and I agree with you, Chris. My only bone to pick with Mercantile is that you still don’t loan in MI.

  2. Mike Giles says:

    Wow Chris,
    Sub 5% is amazing. Great opportunity for owner-occupants. It’s hard to believe the the rate has been even lower. Now I’m curious – what was The Lowest Rate in the program’s history and when?
    Thanks ~Mike

  3. Ira says:

    Thanks for the up-date.

  4. Ron Williams says:

    Thanks Chris for the update!

  5. Thayne Sterling says:

    Thanks for the encouragement, Chris!

  6. Chris Hurn says:

    Mike – it was 4.86% in October of last year.

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