504 Loan Program with the SBA
Are you looking to expand, replace and/or purchase real estate or heavy equipment for your small business?
Join us for the virtual learning experience as we bring on board Don Spry with the Small Business Administration to discuss the 504 Loan Program for current businesses.
The U.S. Small Business Administration 504 Certified Development Company Loan program conserves your working capital by requiring only a 10 percent borrower contribution.* If you do not qualify for conventional financing, the SBA-backed 504 loan may be right for you.
Certified Development Companies (CDCs) are nonprofit corporations that promote economic development within their communities through 504 loans. The SBA authorizes CDCs to provide financing to small businesses with the help of third-party lenders (typically banks).
Maximum SBA loan amount: Loans are generally capped at $5 million. Certain eligible energy-efficient or manufacturing projects may qualify for more than one 504 loan up to $5.5 million each.
Interest rate: Below-market interest rates are fixed for the life of the loan. Required equity: A low down payment (10 percent in most cases) conserves your working capital.
Terms: 10, 20 or 25 year terms
Use of proceeds: Long-term, fixed assets for expansion or modernization (usually real estate or large equipment). Refinancing of large equipment and/or owner-occupied commercial real estate may also be possible.
Speaker(s): Don Spry, SBA Senior Area Manager
Fee: No Cost