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 Trading Rent for Equity
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Steve Grelle,
Business Development Officer |
Small business owners are getting a great deal in today's market! With property values and interest rates so low, it's tempting to forgo rent payments for the accumulation of equity. Using the SBA 504 loan, a business owner can borrow as much as $5.5 million at an attractive, 20-year, fixed rate.
For those small businesses able to pull the trigger, now may be one of the best times to move into a commercial building. Not only will it be a place to grow your business, but also a place to earn equity.
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SBA Refi: Appraisals, Multiple Loans and Extensions |
Some of the questions I get most are about the Small Business Administration's (SBA) temporary refinance program. This somewhat new and always morphing program is one that interests both bankers and business owners alike. We've seen substantial advantage for those small businesses most in need of assistance as well as those with balloon notes and substantial cash flow benefit.
Click here to learn more about the following changes:
- When appraisals are due
- Clarification on multiple loans
- Who approves extension of disbursement period
- Public policy goals and temporary debt refinance projects
sgrelle@slcec.com | 314.615.7681
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504 Loan Tips: Appraisals |
We've all seen it - the difficult loan. You know, the kind that makes you cringe just thinking about it. Like any loan process, the SBA 504 can go smoothly or it can be a headache. Here are some tips to ensure the process is painless:
- The Business Finance Corporation of St. Louis County must be listed as an intended user for the appraisal. This is the easiest at the time of ordering the appraisal.
- Appraisals must be ordered by a bank with the bank as the intended user.
- All appraisals must contain at least two of the three commonly used valuation methods. If there is a valid reason for only using one, it must be addressed in the appraisal. It is still considered an exception to the rule and may cause issues.
- Appraisals must be less than six months old.
By following these tips, your SBA 504 experience can be better than painless, it can be downright efficient.
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