Why 504?

Looking for a way to attract commercial customers?

Try the SBA 504 Loan Program. Small businesses planning to invest in equipment or real estate could qualify for attractive financing that can help you meet your policy goals and regulatory guidelines.

Gain these 504 advantages for your financial institution:

  • First lien position with a low loan-to-value ratio, which minimizes the collateral risk
  • In house credit decisions and use of your own loan documentation
  • Ability to set your own rates and fees
  • No SBA paperwork for you to complete, offering more time with other clients
  • Can gain Community Reinvestment Act credits as the program is overseen by SBA
  • With only a 50% bank involvement, there is a lower reserve requirement

Pass on these 504 advantages directly to your clients:

  • A low down payment to improve your client’s cash flow, which preserves working capital
  • A low, fixed-rate loan to minimize the risk of future rate uncertainty
  • A longer loan term to match debt service with cash flow generated by a long-term asset
  • A real flexibility in real estate ownership options

NEDCO makes the process easy by working with you and your client to tailor a financing package that meets program guidelines and the credit criteria of your client. Moreover, with your permission, we work directly with the applicant in packaging, processing, closing, and servicing the 504 Loan.