Small Business Administration (SBA) Loans
Your business is doing great. You’re in a growth mode. You need capital. What kind of loan is right for you? A U.S. Small Business Administration (SBA) backed loan from South Carolina Federal may be the answer. SBA 504 loans are best suited for borrowers planning to expand their business through building acquisition, land acquisition, construction, and equipment finance.
What’s an SBA 504 loan?
The SBA is a federal agency that helps established businesses grow. As a borrower, you’re not borrowing from the SBA, you’re borrowing from a financial institution like South Carolina Federal that works with the SBA to provide loans to small business members. It is designed to finance large, long-term fixed assets including commercial real estate and equipment.
How is it different from a conventional loan?
- Lower down payments with favorable terms and pricing - as little as 10% down
- Longer loan amortizations - up to 20 years for commercial real estate purchases & 10 years for machinery & equipment
- Real estate and equipment purchases can be wrapped into same loan
- Provides a long term fixed interest rate
Why choose an SBA 504 loan?
- Keep more of your money working in the business
- Lower monthly payments will help preserve your cash flow
- Loan amounts can help meet most of your business’s funding needs
- Rate can be fixed, reducing the risk of market fluctuations
What can I use it for?
- Acquisition of Land
- Land Improvements
- Professional Fees
- Construction of new buildings (business owner to occupy at least 60% with plans to occupy 80%)
- Purchase of one or more existing buildings (business owner to occupy 51%)
- Remodel, convert, expand, or renovate existing building(s)
- Leasehold improvements
- Acquisition of Machinery & Equipment
- Expansion Refinancing
- Non-Expansion Refinancing
Contact us to learn more about SBA loans.
Ready To Apply?
First, make sure you have all of the required forms of identification for your business type. Business Account Requirements
Need help or more information? Contact a Business Services Officer:
Not A Member?
If you’re not currently a member of South Carolina Federal Credit Union, you can still apply for a business account and qualify for membership. Learn more about personal membership
, and for more details, contact our business services team.