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• The 504 Loan Program
• The 504 Project Structure
• Why Choose a 504 Loan?
What is the 504 Loan Program?
The SBA 504 Loan Program is a partnership program between a Certified
Development Company (CDC) and a bank or non-bank lender. By working
in conjunction with banks, Capital Access Group
provides up to 90% financing for commercial property purchases and
new construction, and typically does not require additional collateral!
How is a 504 Project Structured?
To make the most of your 504 loan, Capital Access Group
will design and lead a dynamic partnership with you and a participating
co-lender. Capital Access Group lends up to 40%,
or $2 million*, of the total project cost with an affordable, fully
amortized loan. The participating lender normally finances 50% of
the cost. You, the borrower, typically put down as little as 10%
of the total project cost.
| % |
Project
Cost |
Source of
Funds |
Interest Rate |
Amortization |
Collateral |
| 50% |
$2,500,000 |
Private Lender |
Fixed or
Variable |
20 to 40 yrs |
1st Trust Deed |
| 40% |
$2,000,000 |
Capital Access Group |
March 2010 Rate: 5.48%
Fixed |
20 yrs
Fully-Amortized |
2nd Trust Deed |
| 10%** |
$500,000 |
Business Borrower |
| TOTAL |
$5,000,000 |
| * $4 million for eligible small manufacturers or energy-saving facilities. |
** Start-up OR Special Purpose Building requires
15% equity.
Start-up AND Special Purpose Building requires 20% equity. |
Why Choose the 504 Loan?
An SBA 504 loan is a powerful tool to help your business grow. It
offers:
- 90% financing, to preserve working capital for business expansion
- Low monthly loan payments by utilizing 20 to 40 year amortization
schedules
- A variety of options for interest rates from a First Mortgage
Lender (either bank of account or other commercial lender)
- The ability to finance the SBA fees into the loan, reducing
up-front cash outlay
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