What is an SBA 504 Mortgage?

Low Down Payment

An SBA 504 mortgage loan is a 10% down (in most cases), fixed rate, long-term loan designed to finance the acquisition, construction, renovation and/or refinance of Commercial Real Estate for small businesses. The Real Estate must be at least 51% owner occupied in order to qualify.

Workmen’s Circle Credit Union has partnered with the Small Business Assistance Corporation (SBAC) to provide our members with the opportunity to apply for the SBA 504 Mortgage loans.

FREQUENTLY ASKED QUESTIONS:

+ What are the advantages of the SBA 504 Mortgage loan?
- Ownership instead of leasing. Build your own equity instead of paying the mortgage for someone else. You receive the tax benefits while locking in your occupancy costs.
- Low down payment. Put as little as 10% down thus preserving your working capital.
- Government Backed with low fees. 40% of the loan is backed by the Small Business Administration. The SBA created this program to make business property loans more accessible to small businesses worth under $15 million.
- Longer term financing for up to 10 years for the 50% portion of the loan obtained through WCCU. You may fully amortize the loan or have a 10-year balloon. The portion of the loan funded by the SBA can be for a longer term up to 25 years.
- Competitive fixed interest rates. With rates on the rise, now is the perfect time to lock in your interest rate and not worry about market volatility.
+ How do I apply?
- Contact the credit union at 912-356-9225 or apply through the Small Business Assistance Corporation (SBAC) at https://sbacsav.com/apply-online/External WebsiteExternal Website.
+ Who has the approval authority for an SBA 504 Mortgage?
- The Small Business Assistance Corporation (SBAC) underwrites the loans to the standards required by the Small Business Administration (SBA). Ultimately, the loans are approved or denied by the SBA.

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Useful Links:

Small Business Assistance CorporationExternal Website

SBAC Online ApplicationExternal Website

Or Call Us At: (912) 356-9225