504 loans have never been more affordable

There has never been a better time for small businesses to borrow money to expand.

Record low interest rates combined with the elimination of service fees means that the effective interest rates for loans under the Small Business Administration’s 504 loan program are at historic lows.

“This is an excellent opportunity right now for small businesses to gain access to long-term capital,” said Andrew Young, vice president and senior loan officer of Horizon Certified Development Co.

Under the American Recovery and Investment Act, the economic stimulus bill, borrower fees were reduced or eliminated. Coupled with the low interest rate, an SBA 504 loan is now more affordable than it has been since the program began.

In addition to these low interest rates and fees, some businesses are closing their doors as a result of the recession, meaning commercial properties are coming onto the market at attractive prices. If a small business has been considering investing in a building, now may be a great time to act.

Fee elimination and reduction is good only until funding runs out or until the end of the year.

The 504 loan program provides long-term, fixed-rate financing, with a low down payment, for commercial real estate. Horizon is an SBA-certified development company that works with banks to provide loans to small businesses under the program. Over the last 25 years, we’ve participated as a lender in more than 1,000 projects, investing more than a half-billion dollars in projects. We’ve partnered with dozens of lending institutions to make financing available to growing businesses.

For more information about the program, please contact Andrew Young, Angela Howard or Mike Crowe at 513-631-8292 or at andrew@hcdc.com, howarda@hcdc.com or mcrowe@hcdc.com.