SBA 504 Loans can benefit both a start up or an existing business; however, application requirements vary.
SBA classifies a ‘start up’ as a business in operation for less than 2 years. Projections with detailed assumptions and a supporting business plan can be used to support SBA 504 loans made to a new businesses. After 24 months, the equity requirement is reduced to either 10% or 15% depending on whether the property is multi-purpose or special purpose.
Call us today to learn how we can help your start up borrower finance their place of business.