Benefits for Lenders
Bridgeway Capital takes care of all the SBA issues related to 504 Loans.
Lenders: 504 Loans Let You Do More With a Lower Risk
Looking to lend more within your existing lending restrictions? Want to hang on to a borrower who may otherwise fit your bank? The SBA’s 504 Loan program through Bridgeway Capital can help you.
Key Advantage for Lenders
- Minimize your collateral risk with a first-lien position with low loan-to-value (typically 50 percent)
- Make your own credit decision and use your own documentation on your portion of the deal
- No SBA paperwork, before or after the closing
- Set your own rates and fees
Bridgeway Capital can work directly with your client to package the application, using the same information provided to you for your decision. We take care of all the SBA issues, obtaining any additional information needed directly from your client. We obtain the guarantee, issue a debenture on your client's behalf, and ensure that funds are received at project completion to pay off the interim loans.
What Else Should You Know?
Make your own credit decision
and use your own documentation on your portion of the deal
504 loans typically have a 50/40/10 structure: 50 percent financed by the lender, 40 percent financed by our organization (SBA guarantee), and 10 percent equity by the borrower (additional equity may be required in certain instances).
The borrower must occupy the building being financed since the program is targeted to help companies expand (and not to finance speculative buildings).
Please call us if you are interested in the 504 loan — we will provide you with more details and help you determine if the 504 loan is the best fit for the borrower.
