SBA 504 Financing: Explaining Loan-to-Cost

Investor Financing Podcast

English - March 07, 2024 20:29 - 4 minutes - 6.03 MB - ★★★★★ - 11 ratings
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Previous Episode: Top Franchise Opportunities: Which Ones Are Worth Investing In?

Next Episode: How to Get Pre-Approved for an SBA Loan to Buy a Business

In this video, we cover:

The loan to cost limits for SBA 504 loans, including the 5% haircut for startups and special purpose properties. - How the 7A option allows for higher leverage, up to 90% of total project cost. - The differences in fixed rate terms and prepayment penalties between SBA 504 and 7A loans. - When to choose a 504 loan for larger total project costs. - How to determine the best financing option based on your business plans and property use.

If you'd like to meet with Beau to talk financing, book a call here
( http://bookwithbeau.com/ )