There are several key advantages for the SBA 504 borrower.  They include:

• Low down payment.  The down payment is typically 10% of the project cost allowing you to preserve your cash for working capital.
• Fixed rate.  The rate is fixed for the entire term of the loan allowing you to plan what your cash flow demands are going to be.
• Longer terms for repayment.  504 Loans are for 10 or 20 years.  Longer terms make your monthly payments lower.
• Below market interest rate.  Even with all transaction costs included, the rate for a 504 loan is generally below conventional market rates for loans of similar maturities.