SBA 504 First Mortgages

Solutions For Your Commercial Real Estate Needs

Don’t qualify for a Small Business Administration (SBA) or traditional bank loan? Looking to jumpstart a project in a census-designated low-to-moderate income zone? No problem! Our Impower loan can provide a responsible and flexible way to purchase commercial real estate and build long-term equity.

Who We Work With

Whether you are a non-bank lender, credit union, CDFI, CDC, loan broker, or real-estate broker, our products bring real value to your business by offering rates and terms to satisfy your customer’s needs and win deals

How It Works

Direct Funding

Our funding partner directly funds the loan and thus the selling lender does not have to use its own capital. This transactional approach with our funding partners allows the selling lender to maintain a broad client relationship.

Purchase

Selling lender books the first mortgage loan on its balance sheet, then sells it to the funding partner.

SBA 1st Mortgage Terms & Highlights

Eligible Uses	New commercial real estate purchases, construction take-outs, cash-out refinances, and refinancing of existing SBA 7(a) or SBA 504 1st mortgages
Property Types	Office, industrial, retail, R&D, manufacturing, medical/dental, veterinary, auto repair, schools; select care facilities, restaurants, and storage in California and the Washington, D.C. area, if NMTC-eligible
Geography	Some options can lend in all 50 states
Loan Terms	Up to 25-year fully amortizing loans with 5, 10, and 25-year fixed rates; also 30-year amortization (due in 10) with 10-year fixed available for qualifying properties
Location	Nationwide
Interest Rates	Risk-based pricing from 200–400 basis points over Treasury Constant Maturity Index
Credit Requirements	Minimum FICO 650–680; DSCR 1.0–1.25 based on last tax return and interim period
Prepayment Penalties	Ranging from 5 to 10 years depending on loan structure
Funding & Partnerships	Project sizes up to $20 million; SBA 504 2nd mortgages funded by Certified Development Companies with fixed rates in the mid-6% range — no banking relationship ever required

US Treasury Constant Maturity Index

Property Types

Multi-purpose Properties

Examples of commercial properties may include: Office, industrial, retail, R&D, manufacturing, medical/dental, veterinary, auto repair, schools; select care facilities, restaurants, and storage in California & Washington, D.C. area if NMTC-eligible

Special-purpose Properties

Examples of commercial properties may include: Gas stations, auto dealers, hotels, restaurants, car washes, amusement, care facilities, storage facilities

Delivering Value to Our Customers

Read Some of Our Testimonials

Offense:

Beat your competition while keeping the full client relationship
Earn unlimited dollar amount of fee income (up to 10 points) — not on all our products
Earn premium income
Market our rates and terms as your own and get new business

Defense:

Refinance existing SBA 504 1st mortgages so another lender doesn’t take loan and relationship
Refinance your own SBA 7(a) loans into SBA 504 loans using our 1st mortgage
Do out of market deals nationwide so another lender doesn’t take loan and relationship
Eliminate legal lending limit issues to a single borrower since we book the loan
Satisfy customer needs without affecting your balance sheet