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Small Business

Fund your business expansion with SBA 504 loans from Midland States Bank, an SBA Preferred Lender.

Unlock Your Business Potential with SBA 504 Loans

If you're a small business looking for financing to elevate your growth, look no further. Midland States Bank, a Small Business Administration (SBA) Preferred Lender, is ready to help you build your business dreams with SBA 504 loans ranging from $300,000 to $5 Million. Our friendly and proactive approach ensures a seamless funding experience for you. Get started on your journey to success today.

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What an SBA 504 Loan Is & How It Works

An SBA 504 loan is a specialized loan program for fixed asset financing, including real estate and long-term equipment. Unlike other SBA loans, the SBA 504 program requires a down payment and involves a partnership between a Certified Development Company (CDC) and a private lender like Midland States Bank.

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About the SBA 504 Loan Program

  • Loan Purpose: SBA 504 loan provides financing for fixed assets, which include commercial real estate, machinery and equipment, and construction projects. SBA 504 loans are specifically designed to support the acquisition of these fixed assets, enabling businesses to grow, expand, and improve their long-term operations.
  • Loan Amounts: SBA 504 loans offer financing ranging from $300,000 to $5 Million, providing flexibility to meet diverse business needs. This specialized loan program allows businesses to access several million dollars in funding, making it an ideal choice for significant fixed asset financing needs.
  • Loan Variations: Standard 504 Loans, Debt Refinancing, Green Energy Program, Refinance Program, Small Manufacturers Financing Program.

Apply for an SBA 504 Loan

Enjoy a Lower Down Payment & Longer Repayment Terms

SBA 504 loans require a relatively low down payment, preserving your working capital for other business needs. These loans come with long-term fixed interest rates, giving you predictability and stability in monthly payments. SBA 504 loans also offer longer repayment terms, enabling your business to manage cash flow more effectively and allocate resources strategically. These benefits, along with access to larger loan amounts, make SBA 504 loans an attractive option for acquiring essential fixed assets and supporting business growth and productivity.

Apply for an SBA 504 Loan

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Eligibility Criteria for SBA 504 Loans

The general eligibility criteria for SBA 504 loans include the following:

  • Small Business Size: The business must meet the Small Business Administration's definition of a small business, which varies depending on the industry but typically involves meeting certain revenue or employee size standards.
  • For-Profit Business: SBA 504 loans are available only to for-profit businesses.
  • Operate in the U.S.: The business must operate legally within the United States, including its territories.
  • Tangible Net Worth and Average Net Income: The business's tangible net worth should not exceed $15 Million, and its average net income over the previous two years should not surpass $5 Million.
  • Use of Proceeds: SBA 504 loans are specifically intended for fixed asset financing, such as purchasing commercial real estate, acquiring long-term machinery and equipment, or funding construction projects.
  • Owner's Equity: The business owner(s) is generally required to provide an injection of equity into the project. For most projects, this is typically a minimum of 10% of the total project cost.
  • Ability to Repay: The business must demonstrate an ability to repay the loan based on its historical and projected cash flow.

You Have Questions, We Have Answers

SBA 504 loans are specifically intended for purchasing commercial real estate, acquiring long-term machinery and equipment, or funding construction projects related to fixed assets.

Borrowers are typically required to make a down payment of at least 10% of the total project cost. For startups or businesses that do not meet specific criteria, the down payment may be higher. For more details, contact us today and a loan specialist will be happy to assist you.

The SBA 504 loan process involves working with a CDC and a private lender. The timeline for approval can vary, but it generally takes several weeks to a few months to complete the entire process. For a more detailed estimate, contact us today and a loan specialist will be happy to assist you.

The interest rates for SBA 504 loans are typically lower than conventional loan rates, and they are fixed for the life of the loan. The rates depend on the market conditions at the time of funding. For more details, contact us today and a loan specialist will be happy to assist you.

Startups may be eligible for SBA 504 loans if they meet specific criteria and can demonstrate their ability to meet the down payment requirement.

Yes, SBA 504 loans can be used for refinancing existing debt under certain conditions, such as expanding the business or improving cash flow.

No, SBA 504 loans are exclusively intended for financing fixed assets and cannot be used for working capital or general business expenses.

Yes, collateral is typically required for SBA 504 loans.

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Ready To Get Started?

Your situation is unique, and the ideal SBA loan program depends on your specific needs and qualifications. Seeking guidance from an SBA-approved lender such as Midland States Bank will help you explore available options and select the best-suited loan program. If you're ready to take the next step, start your application online today.

Apply for an SBA 504 Loan

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