For small businesses looking to acquire fixed assets.
Whether it is real estate, capital equipment or any other fixed assets, small businesses have the advantage of long term financing with a fixed interest rate.
Businesses that are:
Individual or Doing Business As (DBA).
Organized as a sole proprietorship, corporation or professional partnership.
Unable to secure other credit under reasonable terms.
For Commercial Real Estate, the project must be at least 51% owner-occupied.
Business’ net income after tax must be of less than $2.5M per year for the past three years.
Businesses with tangible net worth of less than $7.5 million.
SBA participates with a debenture of up to $5,500,000.
In manufacturing companies.
SBA participates through a Certified Development Company1.
Maximum Loan Terms:
Borrower’s Equity Injection:
Typical Use of Proceeds:
Acquisition, expansion or renovation of owner-occupied Commercial Real Estate (land or building).
Purchase of Heavy Machinery and/or Equipment.
Refinancing an existing obligation (some restrictions may apply).
Same application process as a conventional loan.
Longer maturity terms than conventional loans.
SBA fees can be financed into the loan.
For more information, go to: http://www.sba.gov/content/cdc504-loan-program