SBA 504 Loan
M1 Capital Corp stands as a leading provider of the SBA 504 loan program, offering a crucial financial lifeline for small to mid-sized businesses aiming to acquire commercial property. This strategic partnership enhances the accessibility and efficiency of the program, providing entrepreneurs with a trusted ally in their quest for sustainable growth.
How SBA 504 Loan Will Work
The SBA 504 program, facilitated by M1 Capital Corp, maintains a unique occupancy requirement. Within one year of ownership, over half (51%) of the acquired property must be actively occupied by the borrowers. This stipulation ensures that businesses funded through the program contribute to the economic landscape, embodying the program's commitment to fostering tangible growth.
An additional advantage offered by M1 Capital Corp is the option to structure ownership through the formation of a holding company from two operating companies. This innovative approach allows the holding company to assume title to the commercial property, providing eligible applicants with a flexible and strategic avenue for property ownership. U.S. citizens or permanent residents seeking eligibility must hold a majority of the ownership in both the operating companies and the holding company, showcasing the program's commitment to supporting local entrepreneurs.
While the SBA 504 loan program, administered by M1 Capital Corp, does not impose specific restrictions or ceilings, it does uphold three critical eligibility criteria. The company's average net income cannot surpass $2.5 million, ensuring that the program caters to businesses within a specific scale. Additionally, the anticipated project size must exceed the personal, non-retirement, unencumbered liquid assets of the guarantors/principals, emphasizing the program's focus on substantial projects that drive meaningful expansion. Finally, the net worth of the operating companies must be $7.5 million or less, aligning with the program's mission to support businesses within a targeted financial range.
M1 Capital Is Here to Help!
M1 Capital Corp's involvement in the SBA 504 loan program enhances its appeal as a strategic financial solution. The partnership empowers businesses to navigate the path to growth with confidence, leveraging the program's favorable terms and conditions. Whether acquiring commercial real estate or expanding operations through equipment purchases, entrepreneurs can rely on M1 Capital Corp for reliable support, making the journey towards sustainable business development both accessible and impactful.
