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If you are looking to finance (or refinance) owner occupied commercial real estate or equipment there are a lot of good reasons to take a look at the SBA 504 Loan.  With access to this program business owners can take advantage of lower down payments, affordable fixed rates and terms up to 25 years.

A set of recent SBA loan rule changes in the program have now opened the doors to even more businesses being eligible.  Three significant barriers have been removed:

Franchise and Licensing Agreements 

Previously, there was a list of allowed franchises that limited what sort of franchises were deemed eligible.  There was also a need to review licensing agreements which often proved difficult for business owners.  New rules have eliminated these reviews and that means many (like auto dealers) industries can now access the program for the first time.


Determining what other interests of the business owner might cause affiliation issues and then must be considered in the underwriting of the loan has been a complicated matter for a long time.  New rules simplify this and eliminate many of the past complications in this area.

Personal Liquidity 

This is an issue the SBA has struggled with for many years.  Recent interpretations have caused problems for some borrowers with significant means.  The result, you could be turned away because you had too much money.  This never made sense and the SBA has finally agreed to cease this line of evaluation.

We’re Here to Help

Of course, the SBA 504 loan is a government program with plenty of rules and paperwork, but don’t let that scare you off.  We have experienced lenders to help customers access SBA loans through our partner, WBD, Inc. Between NEBAT and WBD, we work together to collect the necessary paperwork. WBD then handles all of interactions with the SBA; they speaks SBA so you don’t have to!

In short, with the removal of these hindrances, more small businesses will now be eligible to take advantage of this great program.

Give us a call today to talk about your commercial borrowing needs.  If you want to learn more about the SBA 504 program check out the links below:

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Additional Resources

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