It’s Time to Reevaluate the 504 Loan Advantage.
There has never been a better time for businesses considering an SBA loan to choose the 504 loan program. Effective March 27, 2025, SBA reinstated fees on 7(a) loans for the remainder of FY 2025, making the 504 program even more cost-effective.
The newly announced changes to 7(a) loan fees will increase borrowers’ costs, including ongoing servicing fees. In most cases, 504 loans offer better financing terms for businesses acquiring fixed assets like real estate or equipment—and they typically don’t require additional collateral beyond the building being financed. The 7(a) program, however, may require personal assets, like a home, if needed. Therefore, the 504 loan is definitely worth exploring.💰
By choosing the 504 loan option, businesses can take advantage of these benefits:
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- Fixed interest rate for the life of the loan
- 10, 20, or 25 Year Term
- As little as 10% down payment
If you or your clients are considering financing for real estate and/or equipment, now is an ideal time to explore the advantages of the 504 loan program.
Please click HERE to connect with one of our loan officers to explore and compare your options.
To read the complete notice regarding 7(a) fees being reinstated, click HERE.