The 504 Loan Program provides long-term, fixed-rate financing with low down payments to businesses. These loans are used to acquire real estate, machinery or equipment for expansion or modernization.
A typical project includes:
- A loan from a bank or non-bank lender with secured senior lien.
- A 504 loan from RMI secured with a junior lien covering up to 40% of the total project cost.
- A contribution of at least 10% from the borrower.
The 504 Loan Program is designed for:
- For-profit businesses.
- Start-ups and existing businesses.
- Owner-occupied businesses.