The Small Business Administration (SBA) 504 loan program was created to help small to mid-sized business owners acquire commercial property without the financial hassles. While this program is less-used and very little understood, in order to qualify, over half (51%) of the property must be occupied by the borrowers within one year of ownership. Another option is forming a holding company from two operating companies. This company can then take the title to the commercial property. To qualify for this program, U.S. citizens or permanent residents must hold a majority of the ownership of the operating companies and the holding company. The 504 Loan does not contain any restrictions or ceilings; however, there are three criteria for eligibility:
The company’s average net income cannot surpass $2.5 million.
The anticipated project size must be greater than the personal, non-retirement, unencumbered liquid assets of the guarantors/principals.
Net worth of the operating companies must be $7.5 million or less.
Excel Commercial Capital Corp. can finance your SBA 504 Loan today! Click here to apply!