Small businesses face many difficulties but, when they thrive, so do local communities.

One key tool that helps small businesses thrive are SBA loans. The SBA 504 is a loan designated for a small business but doesn’t come from a traditional bank. There are many benefits for small business owners in taking out SBA loans. Here are three key benefits…

Benefit 1: SBA 504 Loans are Fixed Interest Loans

A fixed interest loan is one that will not change how much interest is paid throughout the life of the loan. This is significantly safer than an adjustable-rate loan, which can have the amount of interest that you pay adjusted and raised. SBA 504 won’t do that to your loan, keeping it set so that you know how much you will be paying on it. By not having any surprises in this expense, it frees small business owners to focus on the things that matter when running a business.

Benefit 2: SBA 504 Loans Offer Greater Flexibility as a Company

SBA 504 loans are designed for small businesses. Because of this, they offer much more flexibility which can be used to expand your business. Be it marketing, securing a second location, expanding your first location, or a remodel. SBA 504 loans gives you an opportunity as a business owner that you may not have otherwise. For this reason, the SBA 504 is known as the loan that fuels America’s small businesses.

Benefit 3: SBA 504 Loans Are Owned by Three Groups

One unique aspect of the SBA 504 loan is that it is not traditional in the sense that the loan is not between a bank and an individual business owner. This is a three-party loan that is between a bank, an individual business owner, and a Certified Development Company (CDC), such as Lewis & Clark Development Group. A CDC is a non-profit devoted to helping small businesses thrive. They help to make sure the terms of the loan are beneficial to the small business owner and not the bank, which is unique in the lending industry. The SBA 504 is designed to protect small businesses that may otherwise be vulnerable.

There are a lot of reasons to get the SBA 504, but even more reasons why someone may need to get a loan in the first place. Be it unexpected expenses, start-up funds, or a desire to expand, SBA business loans and refinancing are a great option to explore while figuring out what’s right for you and your small business.

Let Lewis & Clark Development Group Help You

Learn more about SBA loansand how Lewis & Clark Development Group can help you. Contact Tracy Whitney today at (701) 667-7602 or attracy@lcdgroup.orgtoday.