SBA 504 Loan Program

The SBA 504 Loan Program creates a 3-party partnership:

• A private institution, such as a commercial bank, typically provides 50 percent of the total project financing. The bank holds a first mortgage lien position on the assets being financed, providing them with an incentive to offer more reasonable terms and favorable rates.

• SEDCO finances up to 40 percent of the project.

• Your company, the small business concern (SBC), normally contributes only 10 percent of the total project cost–a substantial savings of working capital for you.

PROJECT ELIGIBILITY

SBA 504 Loans are designed specifically to help small business concerns with long-term, fixed asset financing, including the following:

• Land

• Building

• Equipment

• Building with renovations

• Construction contingencies

• Debt Refinance

• Debt Refinance with expansion

• Interest and Loan fee (on interim loan)

• Professional fees (appraisal, environmental, title insurances, doc stamps, etc)

LOAN TERMS

The term for an SBA Section 504 Loan is 10 years for equipment and 20 or 25 years for real estate financing. Private financial institutions are required to provide no less than 10 years financing on real estate and 7 years financing on equipment. You negotiate the interest rate on the first mortgage lien position with the financial institution. The financial institution’s excellent collateral position will allow them to offer better than normal rates.

HOW TO APPLY

Your SEDCO 504 Loan representative will guide you through the application process. See our contacts below for your local representative. Call us today for our 504 application to get the loan process started for you on your project.

Need Help or Have Questions? Contact a local representative for more information or call us Toll Free at (800) 850-2504.