Nevada State Development Corp.
Helping Small Businesses Grow Since 1981Our mission is to facilitate the growth of small businesses and to stimulate economic development by providing lending solutions and advocacy services.
Why Do Business Owners and Banks Choose NSDC For SBA 504 Loans?
With Our SBA 504 Loans Options Everybody Wins!
Business owners keep more working capital in the business due to the favorable loan terms, down payment, and interest rate. Sellers get funds faster because of SBA’s faster approval time. Brokers earn commissions quickly and close loans that might not have qualified for conventional financing. Banks get a 50% LTV first lien on the building, typically resulting in a lower interest rate to the borrower. Neighborhoods benefit from increased economic development and additional jobs. Taxpayers are not affected as no tax dollars are used to fund the 504 Loan Program.
Easy Prequalification and Fast Approvals
We can prequalify applicants, saving everyone time in determining which properties might be most appropriate. Our staff will work with the borrower and banker from start to finish enabling most loans to close within 45 days.
Low down payment (usually 10%) and Low, Fixed Interest Rates
Small business owners receive up to 90% financing, allowing them to conserve valuable working capital. Start-up businesses and special purpose properties require an additional down payment.
Experienced staff and Excellent customer service
Personal attention from start to finish. We are the oldest, largest, and only statewide Certified Development Company (CDC) with Premier Certified Lender status in Nevada.
Longer Term of Repayment Means Lower Payments
A 10, 20, or 25-year repayment terms result in even payments. The bank’s loan is in first lien position and is typically amortized over a longer-term.
Ownership Equity in Real Property
Property owners can avoid the risk of ongoing lease payment increases along with possible tax advantages.
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SBA 504 Loan vs Other Loans
When considering financing options for your business, understanding the differences between various loan programs is crucial. Among the most popular choices are the SBA 504 Loan, SBA 7(a) Loan, and Conventional Loans. Each of these loan types offers unique benefits and requirements that cater to different business needs and financial situations. This comparison will provide a clear overview of the key features, including down payments, interest rates, fees, project sizes, collateral requirements, and prepayment penalties, helping you determine which loan program best aligns with your business goals.
SBA 504 | SBA 7(a) | Conventional Loan | |
Down Payment | 10% minimum | 10-15% minimum | 25-40% |
Fees | Included in SBA loan (approx. 2.15%) | Paid out-of-pocket (approx. 2.75%) | Paid out-of-pocket (approx. 1%) |
Interest Rates | SBA second mortgage at below-market rates, fixed for 25 years | Typically variable; tied to prime | Varies by lender |
Project Size | No maximum | Maximum loan amount $5 million | No maximum |
Collateral | No additional collateral required | Additional collateral typically required for 90% financing | Typically no additional collateral is required |
Prepayment Penalty | Yes, for the first 10 years, declining each year | Yes, typically in the first three years | Varies by lender |
| SBA 504 APPLICATION FORMS |
Current SBA 504 Loan Rates for September 2024
20 Year:
6.10%
25 Year:
6.03%
Refi 20 Year:
6.13%
Refi 25 Year:
6.06%
Need Answers Fast?
Contact one of our expert loan specialist to get specific answers about how your business can benefit from an SBA 504 small business loan.
Top Questions To Consider About SBA 504 Loans
Why should I consider a SBA 504 Small Business Loan?
The benefits of a SBA 504 loan includes a low down payment, longer loan terms, and larger loan amounts than may be available through a conventional loan. In most cases, the borrower’s down payment will be 10% of project costs. Interest rates on the SBA 504 loan are below market rate and is fixed for the duration of the loan term (10, 20, or 25 years).
Is qualification dependent upon how long I have been in business?
There is no rule regarding the length of time in business. However, start-up businesses are subject to a higher level of scrutiny. Additional owner equity may be required.
How much can I borrow?
There is no limit on the bank portion of the loan. The SBA portion has recently been increased to the following amounts: up to $5 million for regular loans and up to $5.5 million for Manufacturers and certain energy-related projects.
Helping Small Businesses Grow
Since 1981
Follow Us Online
Las Vegas Office
1551 Desert Crossing Court
Las Vegas, NV 89144
(702) 877-9111
(877) 732-7101 (Toll Free)
SBA 504 Small Business Loan Resources
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