100% Financing Available with SBA 504 Loans
Growing companies often look to conserve cash to solidify their working capital position for the long run, but often growth also requires down-payments on capital purchases for real estate and equipment needs. Fortunately, SBA 504 financing is available through YCEA that offers companies expanding an existing facility or acquiring neighboring property for an expansion project an opportunity to finance 100% of their capital project costs.
SBA 504 financing is performed in conjunction with a bank partner and does require a minimum 10% equity injection, however, a company’s real estate “as-is” appraisal valuation less its current outstanding mortgage balance can count toward the equity injection if the new project is taking place at the current facility or on an adjacent property. In such a case, the typical financing structure is shifted upward so the bank finances about 55% of the new project and the SBA 504 loan finances about 45%.
Click here for more information on the SBA Loan Program.
If you are considering an expansion of your current facility, contact Kenetha Hansen, 717.718.7841 to discuss the 100% financing options offered through SBA 504 lending.