504 Lending

For small business borrowers looking for the highest leverage financing available for tax benefits or looking to conserve working capital for their business we offer Small Business Administration (SBA) 504 financing. SB Capital is the only Bay Area headquartered commercial mortgage banking company with correspondent relationships with the country’s largest institutional financing sources. Our high volume of business and long term relationships with our capital sources enables us to provide the best financing options for each borrower on the best possible lending terms. We provide the reliability expected by borrowers to close the ideal financing package on time and with minimal surprises.

What is a "504" loan?
The SBA "504" loan program involves a first and second mortgage. Combined, these mortgages can provide for up to 90% financing on the purchase of commercial owner-occupied real estate for small businesses. "504" loans cannot typically be used to refinance existing real estate loans. For consideration with this program, the business must occupy at least 51% of the property. To determine borrower eligibility, it's best to work with commercial mortgage bankers such as Small Business Mortgage Corporation that are aware of the many nuances of the program. This will help you avoid loan processing and closing problems down the road.

Key Benefits

• Bay Area's Preferred SBA 504 Lender
• Loans from $250,000 to $10,000,000
• Fixed rates from 6.50% APY, amortization to 40 years
• All Owner-user property types, including special use
• Rate quotes in 1 day, funding in 30 days
• Maximize tax benefits

Program Highlights

• A 1st mortgage provided by our company, typically 50% loan to value,but may be higher. Up to thirty year amortization, with adjustable and fixed rate programs. Combined loan amounts up to $5,000,000 but may occasionally be higher. Prepayment penalties vary. Loan origination fee is typically 1 to 1.5 points.
• A 2nd mortgage, interim funded (typically by the 1st mortgage lender) and paid off within 90 days with a new SBA loan (typically a 20 year fully amortizing loan). Some fees may be financed into the loan; fees are usually about 2.5% of the loan amount. Second mortgages generally are limited to $2,000,000. Manufacturing companies may qualify for up to $4,000,000. 10 year prepayment penalty. Tenant improvements may be financed as part of the project, with the appraisal based upon the "as improved" value of the property.