Sabre Finance
An innovative approach to investing in small business in Alabama

SBA 504 Program

Tell Us About You & Your Business.

What is an SBA 504 loan?

The SBA 504 loan program supports start-up and existing businesses that are seeking to buy land, build a new facility, or purchase new machinary. Are you looking purchase an existing building? – Have been operating out a facility and are outgrowing the space? Maybe your business needs to expand or renovate its building, or purchase large equipment and machinery to expand operations.

If so, then the SBA 504 loan can benefit your small business. This program specifically shares the financing with another lending institution; such as a loan fund, bank, credit union, or other financial institution.

  • Low, long-term, fixed interest rates

  • 10-, 20-, 25-year terms

  • Down payments as low as 10%

In standard 504 loans, Sabre Finance works in partnership with a bank or private lender (3rd Party Lender) that loans 50% of the project amount in conjunction with a first priority lien with the SBA 504 loan provides up to 40% of the project financing, secured by a second lien on the assets financed, and partnering with the bank’s 50%. The business contributes the remaining project amount through equity. There may be variations in the deal structure, based on eligibility and specifics of the project, but the program typically operates as a 50%-40%-10% financing split, meaning the bank finances 50%, the SBA 504 program provides 40% and the business contributes the remaining 10%.

 

What are the advantages of a 504 loan?

SBA 504 loans offer competitive, low fixed-interest rates, a low down payment (as little as 10%), AND a 10-, 20- or 25-year term.

With shared-risk and a first lien on collateral, the 3rd party lender is well-secured. This allows for a collaborative partnership where the 504 lender and 3rd party lender which normally allows for favorable interest rates and terms for the 504 projects being financed. The result is a financing solution that will likely be more favorable to the business than other available options.

PROSPECTIVE BORROWERS

Interested in learning more about the SBA 504 Program? Ready to start the loan process? Please reach out to Keith MacConkey at the information below:

Email: KMacConkey@sabrefinance.org

Phone Number: 205-862-8625

Give us a thorough view of who you are and how you would use the funding, so that we may tailor a plan just for you.