Search for sources of Development Loan and get a free matched list.
Development loan In some cases, a short-term loan securitized by commercial real estate or across other assets for the improvement of real estate property and/or infrastructure such as: roads, utilities, etc.
Long-term Alternative with the SBA 504 loan program.
An alternative to the short-term, "hard-money" or equity investment route is the long-term SBA 504 program. This program provides you with long-term, fixed-rate financing for major fixed assets (land, buildings, etc.). The 504 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; and Purchasing long-term machinery and equipment.
** The loan program cannot be used for working capital or inventory, consolidating or repaying debt, or refinancing. Search for sources of Development Loan and get a free matched list. |
