Development financing with the SBA 504 loan program.
This program provides you with long-term, fixed-rate financing for major fixed assets (land, buildings, etc.). This program is set up to contribute to the economic development of a community. The SBA through Certified Development Companies (CDC) works with private-sector lenders to provide financing to small businesses.
These programs include a loan from a private-sector lender that covers 50% percent of the project and a secondary loan for up to 40% of the project cost from the CDC that is 100% SBA-guaranteed. This will leave you with a combined loan-to-value ratio of 90%.
Funding from this program can be used for:
- Purchasing land and improvements including existing buildings
- Grading and street improvements
- Utilities, parking lots and landscaping
- Construction of new facilities
- Modernizing, renovating or converting existing facilities
- Purchasing long-term machinery and equipment
** The loan program cannot be used for working capital or inventory, consolidating or repaying debt, or refinancing.