Typical 504 Financing Package

Bank 50%	CDC 40%
Market rate ( Variable or Fixed )	Fixed rate
10 year minimum term on real estate	20 year minimum term on real estate
7 year minimum term on equipment	10 year minimum term on equipment
First lien	Second lien

Small Business

Equity 10%

 

Project Sample ( Real Estate )

Loan Amount	Bank	CDC	Small Business
$1,000,000	$500,000	$400,000	$100,000
% Of Project	50%	40%	10%
Term	10 year note * 20 year amortization	20 years	Borrower's Injection
Interest Rate	Market	Fixed
Collateral	First Mortgage	Second Mortgage

Who is eligible?
Independently-owned, for-profit businesses that meet 504 project requirements are eligible. Generally, these are businesses which are ready to expand by purchasing fixed assets ranging from $120,000 to several million dollars.

What are the terms?
On the 504 loan, you get a reasonable fixed rate of interest and terms of 20 years for real estate and 10 years for equipment, with level debt payments.

How do I apply?
It is easy. To get started call us at 209.951.0801 or submit a request here.