8/31/2004

Consider an SBA 504 Loan

This article from BW Online explains:

"The 504 loan program is designed to help healthy small businesses looking to expand. It can also be used by seasoned entrepreneurs or those with industry experience who want to buy a business. Proceeds from a 504 can generally be used for fixed assets with a long life, such as land, buildings, or machinery.

A 504 is really two loans. The first, from a bank, is usually for 50% of the loan amount. A further 40% comes from a nonprofit community development corporation (CDC). The borrower puts up the remaining 10%, hence the common shorthand 50-40-10."