Q&A: Small Business Administration 504 Loan Program
Q: With interest rates continuing at near-historical lows, are there long-term financing options for real estate I should be considering?
A: Particularly for privately-held business owners, loans guaranteed by the Small Business Administration (SBA) are worth considering. The SBA 504 Loan program typically offers lower interest rates and 20-year terms. The SBA 504 Loan program also allows for as little as 10% down on the purchase price. This program is one of many tools and may not be the right fit for everyone as there are prepayment penalties, restrictions on business ownership and size, and other features that encourage long-term ownership. You should consult with legal or financial professionals to see if this, or other options, provides you with the best financing.
Originally published in the Portland Business Journal.
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