In 2012, Merchants had a total of 11 SBA 504 loans, participating in more than $10,000,000 in SBA 504 loans. Typically, a bank will finance up to 50% of a SBA 504 loan for a small business, with the SBA financing another 35-40% of the loan.
The business would be responsible for the remainder of the funding. With SBA 504 loans, the SBA offers long-term fixed rate financing on its portion of the loan.
SBA 504 loans are often used to start a business and are used for real estate purchases, purchasing equipment, or for expanding an existing business.