504 vs. 7(a)

 

No matter how small a project may be, the 504 program is always a great choice because it gives the borrower the option to put as little as 10% down and to lock in a fixed interest rate for a 10, 20, or 25-year term. But did you know that when just comparing fees, if the total project costs are $300,000 or higher, using the 504 Program is a clear choice.

• As little as 10% Down
• Lock in a Low Interest Rate for a 10, 20, or 25 year term (see current rates above)
• Collateral is usually limited to just project assets
• Reduce Bank exposure to 50% of the project total
• Bank maintains first priority lien position

Next time you have a project, please give one of our loan officers a call and they would be more than happy to run a cost estimate or loan comparison for you so you can present your customer with the best option. If 7(a) is the right fit for your customer, GLCF can help with the process as well. To learn more, please call Amy Dubridge at (616) 323-1279.