504 Loans – The Good, Bad and Ugly

With the weak economy deterring many small businesses from expanding, demand for SBA loans plummeted: Last year, the SBA approved $3.8 billion in 504 loans, down 28% from 2008 and 40% from 2007. Now, hoping to spur expansion among small companies, the SBA is offering inducements like lower rates and no-fee deals. Demand is picking up again for these 10%-down, fixed rate loans, but if you’re thinking of pursuing a 504 loan, though, there are some strategies and caveats to keep in mind.  Read more…