Why Do An Alacom Finance 504 Loan
For the Borrower:
- Low Down Payment; Usually between 10% & 20% of cost
- Fixed Interest Rate Second Mortgage Loan
- Long Term Financing
- In "Credit Crunch"- getting a loan at all
- Rate on private sector loan is usually a little more favorable
For the Community:
- Jobs
- Capital Investment; tax base increase
- Stimulation of other development
For the Lien Holder
- Excellent loan-to-value loan
- U.S. Government as subordinate lender
- Market interest rate; fixed rate second
- Less paperwork and "red tape" than 7(a) Loans
- Reduced interest rate to institution from FHLM
