SBA 504

Funding Details: Key Benefits 10, 20 or 25 year fixed rate options Equity injection as low as 10% Subordinate financing to primary lender Funding Uses and Purposes Land Acquisition Building / construction / expansion / renovation Long-term machinery and equipment Soft costs related to above items Commercial mortgage refinancing Eligibility Borrowers must be for-profit businesses...

Funding Details:

Key Benefits
  • 10, 20 or 25 year fixed rate options
  • Equity injection as low as 10%
  • Subordinate financing to primary lender
  • Funding Uses and Purposes
Land Acquisition
  • Building / construction / expansion / renovation
  • Long-term machinery and equipment
  • Soft costs related to above items
  • Commercial mortgage refinancing
Eligibility
  • Borrowers must be for-profit businesses or farms with a tangible net worth < $15 million and 2-year average net income < $5 million
Loan Structure
  • A commercial bank will provide senior financing for 50% of project costs
  • CAN DO Finance will provide an SBA 504 loan in a subordiante position for up to 40% of project costs
  • Borrower will provide a minimum of 10% equity injection into the project
Amounts
  • $5 million maximum loan amount for most borrowers up to 40% of project costs
  • $5.5 million maximum loan amount for manufacturers and certain energy efficient projects up to 40% of project costs
*Additional Info Special purpose properties and new company loans reduce the maximum loan amount to no more than 30-35% of project costs