SBA 504 Loan Interest Rates
Official monthly SBA 504 effective interest rate tables can be found at Eagle Compliance LLC. 25- and 20-year term loans fund every month; 10-year term loans fund every other month. Effective interest rates are inclusive of servicing fees, which are subject to credit risk of the applicant.
Q: Are E-2 Visa holders eligible for a Small Business Administration (SBA) 504 loan?
A: Usually not, because eligibility for SBA 504 and guaranteed loans requires that the applicant either be a citizen or a Lawful Permanent Resident (LPR) (“green card” holder). E-2 Visa holders are nationals of a country where a qualifying Treaty of Friendship, Commerce, or Navigation or its equivalent exists with the United States (http://www.uscis.gov/eir/visa-guide/entrepreneur-visa-guide).
However, under special circumstances, the SBA will consider authorizing a 504 loan if the following conditions are met:
• The application must contain assurance that management is expected to continue in place indefinitely who have U.S. citizenship or verified LPR status.
• Additionally, the management described above must have operated the subject business for at least 1 year prior to the application date. No financial assistance will be granted to “start-up” businesses owned by aliens who do not have LPR status.
• The SBA prefers the guaranty of management. If it is not being offered, the decision must be explained in the loan application.
• The SBA will also require the alien applicant to pledge additional collateral located within the jurisdiction of the United States with a liquidation value equal to no less than the approved loan amount at the time of the first disbursement and, to the extent that the value of the collateral declines. During the life of the loan, the SBA may require the borrower to pledge additional collateral to ensure a sufficient collateral coverage amount.
• If the small business applicant owned by foreign nationals, foreign entities or non-immigrant aliens residing in the United States does not have sufficient collateral, the applicant is not eligible for a guaranteed loan.
• In order for a business not to be subject to these additional requirements, it must be at least 51% owned by individuals who are U.S. citizens and/or who have LPR Status from USCIS and control the management and daily operations of the business.
If you have a question you'd like our SBA 504 loan experts to answer, email us at info@ffcfc.com or call 850.681.3601 or toll-free at 888.320.5504.
