If you are a small business owner who has been looking into long-term financing, you’re probably already familiar with the 504 loan program. The U.S. Small Business Administration (SBA) provides 504 loans of up to $5 million to help small businesses afford major fixed assets. In order to apply for the 504 loan program, you’ll need to work with a Certified Development Company (CDC), like Growth Capital Corp. Keep reading to learn about how you can pick the best lender for your business and to be introduced to a few of the top SBA 504 lenders in Ohio.
Choosing the Lender That’s Right for Your Business
Our July blog walked you through determining how much funding your business might be eligible for through the SBA 504 loan program. The next step is to think about which lender is the right fit for you as you navigate the loan application and acquisition process. In order to do that, you’ll want to consider the following:
Your small business is likely geared toward serving a very specific community or area, so you want to work with a 504 lender that understands the local economy and the role your small business plays in it. Because of this, you might want to prioritize finding a lender that is local—the SBA has a helpful local assistance tool to start your search.
- Certified Lender Status
When you are looking for a 504 lender, the number one thing you must keep in mind is that not all lenders have the same capabilities. As you start wading through your options, you need to be sure that the lender you choose has SBA approval; if you’re looking online, their website should have this information present.
The process of applying for a 504 loan can feel overwhelming, so it’s important that you team up with a lender who knows the ropes. This is not to say that you shouldn’t consider a newly SBA-approved lender, just that you should consider the experience and expertise of the lender you pursue.
A lender’s reputation and other businesses’ experiences can tell you a lot about the experience you’re likely to have as you navigate loan application and procurement. We at Growth Capital feel it’s important to highlight right on our website how businesses we’ve worked with have done working through this process with us; most quality lenders should have similar information or testimonials.
Ohio’s Top SBA 504 Loan Lenders
The SBA’s most recent ranking of CDCs based on 504 activity shows the most recent fiscal year data on top CDCs in each state. Here are Ohio’s—
- Hamilton County Development Company, Inc.—Cincinnati, OH
- Ohio Statewide Development Corporation—Columbus, OH
- Growth Capital Corp.—Cleveland, Ohio
Work with Growth Capital to Obtain a 504 Loan
SBA 504 Loans are available exclusively through CDCs, like Growth Capital Corp., and should be handled by knowledgeable folks in and around your business’s community. We work with business owners and bank loan officers to help you navigate the lending process as efficiently as possible. We are proud to have been one of the top SBA 504 lenders in Ohio for the last 11 years and our staff of dedicated professionals would love to help you get started today!