Illinois Business Financial Services
At least 10% equity contribution from business owner
Up to 50% from bank or third party lender
Up to 40% from the SBA, via IBFS
As an authorized administrator of the SBA 504 loan program, IBFS works with qualified businesses to develop, package, and process business growth projects. By partnering with Illinois banks and integrating client, bank, and SBA financing, IBFS helps businesses expand their operations.
The SBA 504 Loan Program offers financing for the purchase of fixed assets including real estate, buildings, and capital equipment. These small business loans offer below-market interest rates and are backed by a 100% SBA-guaranteed debenture for the 10- and 20-year programs. Small business owners may use a 504 Loan to grow and expand their businesses.
Commercial lending for small businesses
SBA 504 Loan Program
Cost for project
Example of financing on a typical $1 million project or equipment:
SBA 504 Loans feature several key benefits for borrowers.
-Low down payments (typically 10-15%) help borrowers conserve valuable operating capital.
-Below-market fixed rates ensure no future rate fluctuations.
-Long-term financing promotes steady business growth.
-Fully amortized loans over 10 or 20 years help lower costs of capital for small business owners.
This picture shows the roles of each party involved. The blue represents IBFS and their contribution to the loan. The yellow represents the chosen bank's portion, leaving the borrower to only contribute the green portion of the loan.
The SBA 504 can help businesses in many industries, including:
-Hospitality (hotels and restaurants)