In addition to your low exposure lending 50 cents on every project dollar, the SBFC's large second stands behind your decision to mitigate your exposure even further. The large long-term SBFC fixed rate loan also has secondary benefits for your customer by reducing sensitivity to variable rate increases. That makes your other short term business and consumer loans that much more stable for the 504 customer, and for your bank.
Although most lenders keep the low-risk SBFC 504 loans in their portfolio, an aggressive secondary market for the bank’s first exists through several nationally known banks.
Few things can damage a business relationship more than a customer feeling they were not given every financing option. You can now comfortably present the SBFC 504 Program as a viable, timely and cost effective loan option. Your customers will appreciate being able to explore the SBFC option with you.