Want to know about SBA 504 programs?

FOR IMMEDIATE RELEASE
Altoona, Pennsylvania, United States of America (Free-Press-Release.com) November 16, 2011 -- If you are looking forward to take commercial loan for purchasing fixed asset or construction of building then applying for SBA 504 loans would be the best alternative. 504 SBA program allows the borrower to pay less interest than the market rate. Equipment purchased after taking 504 SBA loan must have a useful life for at least 10 years. To retrieve more information about it online, you need to visit www.504sbaloan.net.

Do you want to take long-term, fixed rate loan for major asset purchase? If yes, then you must draw your attention towards the availability of SBA 504 loans. Amount received from these loans can only be utilized to purchase fixed assets like land, improvements to buildings, streets, utilities, parking lots and landscaping. Moreover, you can also use the proceeds of this loan to construct a new building and buying machinery and equipment. However, if you are purchasing new equipment then it should have a life of at least 10 years. It is noteworthy that 504 SBA loan operates as a partnership between a third party lender, a certified development company and the borrower. As far as benefits of these loans are concerned, business owners would be entertained with below market fixed interest rates, low down payments and long-term financing.

Before applying for 504 SBA loan, you must make sure the qualifying criteria for it, considering the fact that business must be for-profit company with a net worth of $7 million. You must know that SBA also sets cap on the net income of the business. Moreover, business applicant needs to be the primary user of a facility along with a minimum percentage of 51% for an existing building and 60% for a new building. You must make sure that a new job is being created for every $35000 availed by a certified development company. Pay attention! Non-profit companies, lending institutions, real estate development companies and passive investment companies have no scope for SBA 504 loans.

SBA 504 program can only be applied for financing fixed assets so it would not be a wise option to choose, if you want to finance the purchase of a new business. It is to note that goodwill, intangible assets and working capital are not eligible under the 504 program. You can not use the proceeds from these loans for refinancing. If you are still confused about the terms and conditions applied in this program then feel free to visit: http://www.504sbaloan.net/.

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