How the 504 Loan Works
Alacom Finance is certified by the U.S. Small Business Administration to package, process, close and service the 504 Loan. Our funds are obtained through the sale of SBA guaranteed debentures on the private capital market
The borrower must contribute at least 10% of the project cost, (additional 5% for start-ups and 5% for single purpose projects may be required), either in cash or equity in project related land. Alacom Finance provides a maximum of 40% of the project cost or $1.3 million ($4 million in special cases). A private lender provides the balance on a first mortgage basis.
