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Our Current SBA 504 Rates
10-year fixed
20-year fixed
25-year fixed
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Whether you're a lender or professional who wants to give options to your business clients or a business owner who wants to know more about SBA 504 loans and traditional loans for new buildings, renovations, and equipment, here's what you need to know about SBA 504 loans...
SBA 504 Loan
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Traditional Loan
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Loan Amount
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up to 90% financing of the total project cost (land, construction/renovations, soft costs, closing costs)
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75-80% of appraised value or purchase price, whichever is less
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Equity
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10% of the total project cost | 20-25% plus closing and soft costs |
Term
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1st Mortgage: 20 or 25 years 2nd Mortgage: 20 years. No balloons or rate resets. |
Frequently, 5, 7, 10, or 15 years then balloons |
Amortization
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1st Mortgage: 20 or 25 years 2nd Mortgage: 20 years. |
15 years |
Pricing
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1st Mortgage: Competitive fixed or variable rates. 2nd Mortgage: Usually 0.5-0.75% less than competitive rates and fixed for 20 years. The least expensive financing available to most small business owners for commercial real estate. SBA 504 loans are assumable. |
Competitive fixed or variable rates. Usually not assumable. |
The benefits of SBA 504 loans can have a major impact on business owners by preserving precious capital, having longer terms to pay back the loan, and needing only 10% down compared to 20-25% required on traditional loans. See all the benefits of an SBA 504 loan
April 1, 2014
CMDC partnered with Premier Commercial Properties and MetroNorth Chamber of Commerce to offer insight on the North Metro Minneapolis business and real estate market.
Read more ...March 11, 2014
Many business owners are anxious to pay off their loans early. However, if your loan terms are very favorable, such as having a fixed low interest rate over a long term like an SBA 504 loan, keeping your loan and investing that money elsewhere for Repairs, Maintenance, Added Inventory, or Expansion may be a better financial decision. Keeping your loan intact can increase the value of your business and can possibly increase your income.
Read more ...February 13, 2014
To help in the development of new businesses and housing on privately-owned real estate redevelopment sites with contamination concerns in specific areas of Minnesota, $8M in Brownfields funding will be available in Spring 2014 to investigate or clean up contaminants. Funding will be awarded through competitive public grant programs and is available to cities, counties and development authorities who partner with private developers on specific projects.
Read more ...December 30, 2013
2013 was an exciting year for CMDC and the small business owners and lenders we partnered with in Minnesota. There were certainly some highs and some lows, but overall it was a good year that showed more stability in the economy and increased small business growth in Minnesota. The outlook for 2014 is optimistic with manufacturing projected to be a growth industry in MN.
Read more ...