Intelligent Financing for 2K1 and Beyond 

The 504 Loan is an economic development financing program for small and medium sized businesses that need to invest in space or purchase machinery and equipment to further enhance the growth of their business.

Basic criteria for eligibility:

1)  History of profitability and reinvestment in the company

2)  Must create or retain jobs or satisfy other defined economic development objectives

3)  Owner-occupied financing

4)  For-profit company

5)  Financing needs must be used for long term fixed assets

6)  New financing (no refinancing or debt restructuring)

Financing is based upon total project cost and comes from three sources:

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% of          Source     Lien    Amount            Rate        Term         Term
Project                                                              Real        Equip.
Cost                                                                  Estate
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50%         Private      1st      No Limit             Market    10 Yrs +   7 Yrs +
                 (Bank)
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40%         504            2nd     $50,000               Fixed        20 Yrs     10 Yrs
                                               to $750,000**
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10%         Equity
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** The 504 Loan amount can increase to $1 million if the project
or business qualifies in one of the following ways:  minority owned
business; located in a rural area as defined by SBA; manufacturing
facility or advancement of technology; company must make changes
due to regulatory environmental compliance; financing will assist
in expansion of exports; business district revitalization; changes
necessitated by Federal cutbacks.

Loan Process

Contact Certified Development Company in your area to discuss whether your business and your project meet 504 guidelines.  It is responsible for preparing a detailed credit analysis and for preparing the 504 loan package.  We work directly with the small business and will assist in finding a first trust lender.  Total time is approximately 60 to 90 days.

Where to go for further information

The 504 Loan is available through SBA Certified Development Companies.  Certified Development Companies are private, nonprofit corporations whose purpose is to assist small businesses.  The Certified Development Company located in the same area as your business will assist you.