SBA 504 Loan Parameters

 
SBA 504
Eligible Locations:
MSA’s within the U.S. and its territories exhibiting strong economic and property-type specific fundamentals
Eligible Use:
Acquisition of Owner-Occupied, Hospitality, Special and Single Purpose Properties
Loan Amount:
Up to $13,000,000
Loan Term:
Up to 25 Years
Amortization:
Up to 25 Years
Loan to Value:
Up to 90% of FIRREA Appraised Value. Minimum 1.20x DSCR on in-place cash flow
DSCR :
Minimum 1.20x DSCR on in-place cash flow
   
Reserves:
Tax and Insurance
Sponsor (s):
Creditworthy individual(s) acceptable to Lender with sufficient liquidity and net worth
Borrowing Entity:
Operating entity that will occupy the commercial real estate
Recourse:
Full-Recourse
Assumability:
Yes in case of building sale for $1000 assumption fee
Prepayment:
5-Year Prepayment Penalties