Lease vs. Buy
Now more than ever it is time to consider buying your building vs. leasing your space. The SBA 504 loan Program has been around for many years, but with the passage of H.R. 1, the American Recovery and Reinvestment Act of 2009, the program looks even better. Don’t pass up the opportunity of 90% financing with very favorable terms and conditions.
SBA 504 Loan Program Benefits from Economic Stimulus Act Posted on Mar. 3 2009 1:01 pm
The passage of H.R. 1, the American Recovery and Reinvestment Act of 2009 in February included several enhancements for the SBA 504 loan program.
Two fees have temporarily been eliminated on SBA 504 loans. The lender participation fee and the Certified Development Company (CDC) processing fee will now be paid directly by the federal government. CDCs will be reimbursed for their servicing fees by the SBA. The temporary elimination of these fees will make obtaining an SBA 504 loan more affordable for small business borrowers in the coming months - for a typical $1,000,000 building purchase, this results in fee savings of $8,500!
The Stimulus Act provided $375 million for the elimination of fees for both the 7(a) and 504 programs through December 31, 2009 or until this allocation has been exhausted.
For more detail on how the 504 program can help you acquire a building for your business with as little as 10% down, please contact:
Lynn Beadling, Senior Loan Officer - Evergreen Business Capital
Click Here to read more about the 504 SBA Loan Structure...
Click on the image or buttons below to download a PDF of the Lease vs Buy scenarios for either Light Assembly/Flex Users or Office/Flex Users:
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