Compare SBA 504 to Traditional Financing

How Does a SBA Loan Compare to a Traditional Bank Loan

TxCDC SBA 504 Loan with Partner Bank Loan
PROJECT AMOUNT $1,000,000
Loan Fees and Costs $13,000
OWNERS INJECTION (10%) $100,000
Interest Rate Total Interest Paid During 10 Years Total Interest Paid During 20 Years
Borrowing Need $913,000
Bank Loan $500,000 6% $250,893 $359,717
TxCDC SBA 504 Loan $413,000 4.76% $164,830 $220,957
Monthly Payment $6,253 $2,671 $3,582
Annual Savings in Payment $2,340
Savings in Interest over the Life of the Loan $66,817

 

Traditional Bank Financing
PROJECT AMOUNT $1,000,000
Loan Fees and Costs $10,000
OWNERS INJECTION (20%) $210,000
Interest Rate Total Interest Paid During 10 Years Total Interest Paid During 20 Years
Borrowing Need $800,000
Bank Loan $800,000 6% $404,025 $575,547
Monthly Payment $5,731