SBA 504 down payment options

[Lucky R]

Hi all,

I own a small business and I currently rent commercial space. I want to move out and buy a lot nearby. My business will be occupying part of the space and I can rent out the remaining space. I made a lot of friends in the nearby small business community so finding renters should be easy.

I did my research and it looks like SBA 504 will be the best option for me. I fit perfectly in all categories... except I don't have enough cash for a down payment and working capital during the construction.

What are my options for down payment? Some of my customers are ready to invest in the new location, but I don't understand the technicalities of taking their money as investment/down payment esp when combined with SBA 504 financing. My goal is to own the real estate and be a landlord instead of being a renter. Any help you can provide is appreciated.

Thanks,

Lucky