Development Financing

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.

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