The US Small Business Administration 504 Funding or Certified Development Company program is designed to provide financing for the purchase of fixed assets, which usually means real estate, buildings and machinery, at below market rates.
The SBA does not make direct funding to small businesses. Rather, the SBA sets the guidelines for funding, which are then made by its partners (lenders, community development organizations, and micro-lending institutions). … SBA funding can be as large as $5 million. Most SBA funding are through banks.
The SBA works with lenders to provide funding to small businesses. The agency doesn’t lend money directly to small business owners. Instead, it sets guidelines for funding made by its partnering lenders, community development organizations, and micro-lending institutions.
The most important SBA funding requirements are that you can demonstrate excellent personal credit, strong business financials, and provide “adequate collateral.” Depending on your lender, the SBA might also require a personal guarantee for every owner who owns at least 20% in the business
As you can imagine, these SBA funding do require a down payment, worth 10 to 20% of the total amount you’re borrowing. But the SBA offers several no money down small business funding programs, including the SBA Microloan. … However, you’ll need some form of collateral to qualify for this type of funding.
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