Gellyfish is the option that offers the reliability and flexibility your business deserves.
Take your business to the next level with an SBA 504 loan, a powerful program geared to help business owners purchase fixed assets for expansion or modernization.
If you are looking for an SBA 504 loan for business financing in California, or anywhere in the United States, you are in the right place.
At Gellyfish we make it our mission to facilitate commercial cash flow offering you a wide array of options, including SBA 504 loans.
What Are SBA 504 Loans?
Also known as Grow Loans, this financing option can be used to buy, build, or renovate commercial real estate properties and purchase large equipment including some rolling stock. Some real-life uses of these loans include:
Purchasing equipment or machinery
Purchasing existing buildings
Purchasing land or land improvements
Ground up construction of new building facilities
Renovating or improving existing facilities
Refinancing current debt related to the expansion of your business
What Are the Differences Between SBA 7(a) Loans and SBA 504 Loans?
504 loans and 7(a) loans are two of the most popular SBA lending programs. However, there are some important differences between them. Below are just a few of the main differences between the two loans:
While 7(a) loans are capped at $5 million, 504 SBA loans can range from $25,000 to and excess of $20 million.
The interest rates on a 504 loan are fixed, while 7(a) loans can be variable (although there are some fixed-rates options as well).
Finally, the down payment for a 504 loan is typically 10 percent and required no additional collateral.
By contrast, with 7(a) loans the minimum down payment is 10 percent would typically require additional collateral to be pledged or to avoid doing so, additional down payment would be required.
Pre-Payment penalties also differ in that SBA 504 loans have a 10-year prepayment penalty time frame while 7(a) loans only have a 3-year prepayment penalty time horizon.
Find the Business Financing Solution that Works for You
Our experts will craft a personalized plan to help you achieve your goals
Who Can Apply for an SBA 504 Business Financing Loan?
Most for-profit businesses qualify for 504 loans. These are some of the key aspects to keep in mind:
Businesses must have a tangible net worth of less than $15 million, with an average net income of less than $5 million after taxes for the prior two years
Existing buildings must be at least 51% owner-occupied
New buildings must be at least 60% owner-occupied
Equipment must have a useful life of at least 10 years
Certainty of Execution in SBA 504 Loans for Business Financing
Gellyfish Commercial provides reliability, superior service, and certainty of execution in business financing.
Contact us today at (877) 800-4493 or fill out the online form for a free quote or to learn more about our flexible financing solutions.
Commercial Real Estate Financing
At Gellyfish Commercial we offer a broad spectrum of commercial real estate financing options. Our deep expertise and decisive approach allow us to provide our clients with effective financing solutions tailored to the Southern California market.
Having the right tools is a critical aspect to the success of any company. That’s why at Gellyfish Commercial we provide cost-effective and flexible equipment financing solutions to help you reach your business goals.