What Are the Advantages of an SBA 504 Construction Loan?

What Are the Advantages of an SBA 504 Construction Loan?

In this video, Beau discusses the advantages of an SBA 504 construction loan over a conventional loan. He highlights the lower down payment requirement, with only 10% down if it's not a startup, as the biggest advantage of the SBA 504 loan. Additionally, he mentions that with a conventional loan, closing costs have to be paid out of pocket at closing, whereas with the SBA 504 loan, these costs are financed into the loan.

Another advantage that Beau notes is that his bank factors in an interest Reserve into the total project cost, which allows for interest-only payments during construction and no out-of-pocket expenses for the sponsor. This, he explains, is not always offered by conventional banks.

Beau also invites viewers to book a call with him to discuss SBA financing options, including the 7A and 504 loans, for different types of businesses and projects. He emphasizes that his bank offers multiple solutions and can walk viewers through the SBA loan process. Finally, he invites viewers to subscribe to his channel for more information on financing and lending.

Are you a real estate investor or business owner looking to expand? Book a discovery call with Beau to learn all the ways he can help you - https://investorfinancingpodcast.com/rumble

Timestamps:
What are the advantages of an SBA 504 construction loan versus a conventional loan?
Timestamps:
(00:10) SBA 504 construction loan has a lower down payment compared to a conventional loan, which can be as low as 10%.
(00:29) Closing costs can be financed into the loan with an SBA 504 loan, unlike a conventional loan where they have to be paid out of pocket at closing.
(00:44) Some banks, including conventional banks, may not factor in an interest reserve in the total project costs, unlike SBA 504 loans.
(00:51) The interest reserve included in SBA 504 loans allows for interest-only payments during construction, with no out-of-pocket expenses for the sponsor.

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#SBA #SBA504 #SBA504constructionloan

About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.

If you'd like to ask me a question about real estate, do it here -- https://investorfinancingpodcast.com/ask

🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance all your projects.

About the Channel: Want to structure your investments in the right and secure way?

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