| SBA Program |
| Why SBA? | : | What are the benefits? | : | Who qualify? | : | How does it work? |
Why SBA?
Found that perfect building, but your banker says you need 30% down? Can't afford 30%;? Plus pay for renovations and soft costs and still have enough working capital left over for the expansion? Well, a 504 certified development company can help you by making you a loan to buy that building through the SBA 504 loan program. Only 10%¹ down by you. All project costs are included-land, building, renovation and soft costs. The loans are long term and provide a low fixed interest rate. The SBA 504 loan program can even finance the machinery you need to buy. Interested?
- You often need only 10%¹ down
- Lets you keep more of your cash for working capital during your expansion
- Long term -- low fixed interest rate
- Finance your soft costs including accountant fees, title, insurance, attorney closing fees, etc.
Economic Development Requirements
SBA 504 is a community lending program designed to improve the locality. Eligibility requires either: Job creation or retention (one job per every $50,000 borrowed from CDC under SBA 504).
One of the following public policy goals to:
- Revitalize a business district of a community with a written revitalization or development plan
- Expand exports
- Expand minority business development (owned 51% or more by minority business person).
- Aiding rural development
- Change necessitated by federal budget cutbacks
- Change required by mandated standard re health, safety, environment
- Increase productivity &competitiveness (retooling, robotics, or modernization)
- Expand woman-owned business development
- Expand veteran-owned business development
One of the following community development goals to:
- Help to improve, diversify or stabilize the economy of the locality
- Stimulate other business development in the community
- Bring new income into the community
- Assist manufacturing firms
- Assist businesses in a labor surplus area.
SBA 504 is not a real estate investment tool. It exists to help the community by helping small business have an impact on the community-by creating jobs or in other ways benefiting the community.
¹ Please note: Equity of 15-20 percentage is required for start-ups and businesses with irregular profitability, lack of historical debt service ability, a short track record or for single purpose properties.