Are you aware there’s a loan program that allows as little as a 10% down payment to purchase owner-occupied real estate, finance owner-occupied ground-up construction, or refinance existing debt—with or without cash out—for qualified borrowers?

Do you need this type of financing but aren’t sure where to go or how to realize your growth goals? If so, this product may be for you.

I’m referring to a 504 loan. A 504 loan is made with the assistance of a Certified Development Company (CDC), which partners with a bank by ultimately funding up to 40% of the loan amount. This allows the bank to lend with a Loan-to-Value as low as 50%, meaning less risk for the bank and less cash outlay for you, the borrower—while still allowing for up to 90% financing.

Of course, the higher LTV may result in a higher monthly payment in some cases, but the typical CDC rate is often lower than the bank’s rate, resulting in a blended rate that’s lower than traditional financing. Plus, fixed terms for the 504 portion can range from 10 to 25 years.

If you’re growing your business and need a path forward, a 504 loan may be the right solution.

Reach out to one of our seasoned commercial bankers – we’re here to help you with all your business financing needs!