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504 Loans

We can arrange a number of commercial financing programs for you, connect you with others, and help find technical assistance to grow your business.

504 program

Most people think working with the SBA is complicated, time-consuming and only applies to small 'mom-and-pop' businesses. Not true! To qualify, a business must have a net worth of less than $8.0-million or net income of less than $3.0-million, a description that encompasses the vast majority of businesses out there today in this economy.

We can even fund projects for non-U.S. citizens. And the process doesn't take months for approval; your money can come in as little as 2-3 weeks.

The 504 program helps businesses fund projects for fixed assets, including real estate or equipment. We can finance some start-up operations, but only those with a successful track record in business. Loan eligibilty is based on historic or projected cash flow, so collateral is not always an issue.

The 504 program can fund new equipment to grow and enhance your business operations. It can also fund the acquisition of land, site work, construction and even existing building renovations. Loan proceeds may even be utilized to cover soft costs such as surveys, impact fees, appraisals, environmental reports, doc stamps and taxes, closing costs, and professional fees.

Unlike conventional loans, which will often require the borrower's contribution to be at least 25 percent of the project’s costs, our programs frequently require only 10 percent equity injection. When you're operating and growing your business, you want to be sure that you have working capital on hand to meet your businesses’ day-to-day cash flow needs. With projects ranging from $125,000 to $10-million or more, that extra 15 percent in your pocket can make a big difference.

A 504 loan is financed in partnership with a bank, which will hold the first mortgage and will provide at least half your total capital needs. Because your project is structured through the 504 program, the bank's risk exposure is reduced, which can result in a bank interest rate that is usually lower than that being offered under conventional terms. Furthermore, the SBA portion of the loan is fixed and usually at a lower interest rate than market and it is structured to be paid back over 20 years (10 years for equipment loans).

The 504 program was designed by Congress to enhance economic development. In order to qualify, the business must be able to either project the creation or retention of jobs or to fit one of the following criteria:

  • the business must be located in a business revitalization district;
  • the business must have or project at least 10 percent of its revenues from exports;
  • the business must be primarily owned by minorities, women or veterans;
  • the business must be located in a "rural" area;
  • the project must increase in productivity and competitiveness through the use of technology; 
  • the business must be located in an area affected by federal budget reductions, or;
  • the business must meet a community development goal

These criteria are far easier to meet than you think with the definitions embracing the vast majority of businesses.

We're always looking for opportunities to assist businesses and we would be glad to have the opportunity to speak with you about your current and future capital needs. The most common projects to which we lend are hotels, day-care facilities, restaurants, professional and medical offices, assisted living facilities, automotive businesses, convenience stores, and even franchise businesses.

Our underwriting process involves a review of a business' credit history and its ability to service its existing and proposed debt service based upon historic cash flow.

We offer terms and conditions that are aimed at assisting a business in its growth and development, and the programs’ prepayment penalties are designed to meet only long-term financing requirements.

Furthermore, because we charge no fees until the closing, the borrower is under no obligation to close once the process has begun. Contacting us to assist in structuring your project has zero risk, you can always change your mind.

We provide technical assistance on how to grow your business, so even if we can't help you with our financing programs, we can connect you with those who can help.

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