Common Problems & Solutions...

Our SBA 504 loans are specifically designed to help finance small business growth and to get rid of many of the problems small business owners face with ordinary lending...

Problem: Small business owners struggle with large down payment commitments.

Solution: Our 504 loans typically require only 10% down payment commitments, which is about half as much as ordinary loans.

Problem: Long-term, quality financing is hard to find. Ordinary loans only finance commercial real estate for 15 or 20 years, making the proposed monthly payments more difficult to meet.

Solution: Our 504 loans can be obtained for up to 25-year terms.

Problem: Many small businesses need more money than SBA micro-loans provide but are too small for ordinary bank loans.

Solution: Our 504 loans are designed specifically for small businesses with a net worth below $7 million and average after tax profits for the past 2 years below $2.5 million. The total loan amounts can be from $200,000 to $10 million with a maximum loan amount of $4 million for the SBA debenture portion.

Problem: Ordinary banks and economic developers don't understand small businesses and therefore don't want to help finance them.

Solution: Our 504 loans are designed for small businesses and are available for almost any type of business that needs financing for real estate or equipment. Certified Development Companies (CDC's) are the SBA's representatives and are basically economic developers with money to lend to small business owners.

Problem: Fees and expenses of ordinary loans make them out of reach. Many business owners barely have the 20% required equity contribution for a bank loan, in addition, they have to pay out-of-pocket for another 2% to 3% of the purchase price for all the closing costs.

Solution: Closing costs and other up-front costs and expenses are financed with our loans. Multi-purpose commercial properties for small business owners that have owned and operated their companies for several years will be financed at 90% of the total project costs (90% loan-to-cost).


SBA 504 Loan Benefits...

Top 10 Reasons to Contact Franklin Commercial Funding for Owner-Occupied Commercial Property Financing:

1. 90% financing of the total project costs for commercial real estate purchases. Utilizing our 504 loan program allows business owners to preserve more capital for other uses and gain the highest cash-on-cash return for their capital.

2. Businesses can save on interest expenses by not accepting market interest rates when below market, fixed interest rates are available with our 504 loan program.

3. Longer loan amortizations allow for smaller monthly payments, which have less impact on business cash flow.

4. When putting in 10% equity, getting below market interest rates and having the benefits of longer loan amortizations versus traditional lending, business owners' cash flow is less impacted and they can still realize all the advantages of purchasing or constructing commercial real estate.

5. Owning commercial real estate instead of leasing typically has an immediate reduction of up to 40% on real estate expenses, plus the added benefit of converting the third largest expense facing businesses into a fixed cost that does not increase by an average of 3.5% each year like with renting.

6. Financing closing and other soft costs with our 504 loan helps keep out-of-pocket expenses to a true 10% minimum when business owners make the decision to purchase commercial property and only want to spend the minimum amount of cash necessary in order to preserve more capital for other uses.

7. No balloon payments, calls or negative loan covenants enable borrowers to have more control, more peace of mind and less lender micro-management.

8. Dealing with a specialist in 504 loan financing makes the experience of buying commercial property simple and hassle-free. 24 hour pre-approvals and four day commitments are another example of this.

9. Our 504 loans can be made without disrupting your existing banking relationship because we do not require other banking products or services in conjunction with our 504 loans.

10. Our program provides small and mid-sized businesses advantages previously only known to much larger enterprises.