504 Program Features
The 504 program1 is designed to help business owners acquire commercial real-estate and/or heavy equipment without the high cash outlay requirements associated with conventional loans.
- Multi Purpose Loan. Funds can be used for building acquisition or construction, financing machinery, remodeling, expansion and renovations to existing buildings.
- Long Repayment Terms Available. Up to 10 years on equipment (based on useful life) and up to 20 years on real-estate.
- Large Loan Amounts. Projects up to $12 million.
- Low Interest Rates. Below market interest rates when 1st and 2nd mortgages are combined. First Federal finances up to 50% and the SBA finances up to 40%.
- Flexible Occupancy Usage Percentages. 51% on space used for existing facilities. 60% on new construction.
7(a) Program Features
The 7(a) program1 is the most common general purpose, multi-use, single loan available from the SBA. This type of loan is guaranteed by the SBA.
- Multi Purpose Loan. Funds can be used to start up a business, finance working capital or to purchase a business, inventory, equipment or building.
- Long Repayment Terms Available. Terms from 7 to 25 years. Up to 10 years on equipment (based on useful life) and up to 25 years on real-estate.
- Large Loan Amounts. You may borrow up to $5 million, depending on the purpose of the loan.
- Refinancing Available.
For Lenders interested in expanding their commercial offering, First Federal offers a variety of services.
- Consulting. With you or your customers.
- Setup and Processing. Outsource application and processing of origination forms.
- Relationship Facilitation. Get connected to approved resources including attorneys, appraisers and more, .
- Closing. Final Closing package and audit.
- Sales Facilitation. Attain secondary market bids to sell the guaranteed portion of the loan.