The Official Blog of the SBA 504 Experts

504 Loan Blog

We do a lot of construction loans…
  • more-shares
    • Save on Delicious

Construction Financing for Small Businesses

We’ve seen something of a small business construction boom in terms of our loan production in the last few years. Because we have so many construction projects under our collective belt, we think maybe we can say that we’re small business construction loan experts. It’s a very subjective judgement on our part, but we would never say something like that without having some evidence to back it up. Shannon Marks, our President and COO, has graciously answered a few questions about Mercantile’s collective experience in construction financing. Take a look…

Mercantile Capital Corporation provides construction financing for all 504-eligible property types, including office buildings, industrial facilities, hotels, restaurants, car washes, assisted living facilities, and self-storage facilities. There’s been an uptick in construction activity as the economy has improved over the last several years, and we’ve become one of the most active SBA 504 construction lenders nationwide.

Our experience with construction financing makes us stand out from other SBA 504 lenders and makes us more appealing to small business owners. On average, Mercantile’s executive team has about 25 years of construction lending experience on the lending/banking side. Each of them has also been involved with building their own construction projects, from the borrower side of things. Because of this, we know first-hand what our clients are dealing with when it comes to contractors, architects, inspectors, and all the other moving parts and challenges that come with construction projects. When small business owners choose Mercantile for construction financing, they’re not just getting a knowledgeable lender — they’re getting a partner who can help them navigate a complex process. We’ve been there, we’ve done that, and we believe (with good reason, we think) we can do it better than anyone else.

If you have questions or concerns about small business construction financing, we’re glad to help. Call, email, tweet, or leave a comment below. We’re currently working on a full-blown set of resources on construction financing (videos, blogs, additional website content) so let us know what questions you have.

– Your 504 Experts

Tags: , ,

11 Comments

  1. Joel Arbisser says:

    interested

    • Justin Fricke says:

      Joel,

      Great speaking with you today. Just sent you an email with our Pre-Approval Application attached.

      Look forward to working with you!

      -Justin

  2. John Livings says:

    Glad to know this .Will certainly keep it in mind.

  3. Fred C. Voegtli says:

    Seeking construction funds for two buildings within aproject that I am a partner in and the founding partner. Project is located in a very affluent area with traffic count about 150,000 daily. Fifty of our 200 acres with 4000 feet of highway frontage wenow have a Simon Properties high end outlet mall which is drawing big numbers. We are very happy to have Simon Properties as part of our Chesterfield Blue valley project.

    Thanks/Fred
    Chesterfield Blue Valley LLC
    Agricola Associates LLC
    St. Louis Missouri
    314-753-4388

    • Justin Fricke says:

      Fred,

      Sounds like a great project. With a few more details, I’d be happy to let you know what kind of financing scenario we can offer.

      I just sent you an email with all my contact info and some more information on our SBA 504 Loan.

      Look forward to hearing from you.

      -Justin

  4. JAMES CURTIS says:

    have a constructioan in state of GA. do you lend in GA

    • Justin Fricke says:

      James,

      Great question. We’re a nationwide lender, so we certainly do lend in Georgia. I just sent you an email with my contact info and a little more information.

      Look forward to hearing from you soon.

      -Justin

  5. Joe Klein says:

    We’re putting together a package for a $7,000,000 Construction and mini-perm or permanent loan for a Behavioral Health Center in a rural area of North Carolina. What rate and terms can we quote.

    • Justin Fricke says:

      Great question Joe.

      Rates vary from project to project and are relatively tough to quote on the spot with limited information.

      I’d be happy to take an in depth look at this project and give you a good ballpark estimate of the rates we could offer.

      The financing structure would start out as construction financing and revert to long-term permanent financing when construction’s complete.

      I just sent you an email with more details on how that’s look. Be happy to answer any additional questions that come up.

      -Justin

  6. ken howes says:

    what is the maximum $ amount and highest LTC or LTV for a construction loan.

    • Justin Fricke says:

      Ken-

      The biggest construction project we can finance is $15 million and we can go up to 90% LTC on certain construction projects.

      I just sent you a follow up email as well. Let me know if I can answer any additional questions for you.

      -Justin

Leave a Reply

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

Back to all Entries