SBA 504 Loan Lender Benefits
The 504 loan program is a WIN! WIN! WIN! Partnership between the business, the bank and the community.
The SBA 504 loan gives lenders great benefits:
- First lien position on all collateral
- Reduced exposure due to 50% loan-to-value on collateral
- Community Reinvestment Act (CRA) credit
- Business development tool for lenders
- No forms or applications for the lenders to complete- just forward the financials and bank write up
The 504 loan program involves a partnership between the borrower, the bank, and the Regional Development Company. Typically it is referred to as the 50-40-10 structure.
