The SBA 504 Loan Program. Financing the Owner Occupied Property

Size: px
Start display at page:

Download "The SBA 504 Loan Program. Financing the Owner Occupied Property"

Transcription

1 The SBA 504 Loan Program Financing the Owner Occupied Property

2 SBA 504 Overview PURPOSE: provide FIXED RATE, long-term, below- market,, subordinated financing to owner- occupied small businesses promote and assist in the growth and development of small businesses benefit the local economy create jobs

3 Use of Proceeds Land, including site work and improvements Buildings including: purchase of existing building, new construction, renovation Machinery & Equipment with a minimum useful life of 10-years Debt Refinance permitted under circumstances permitted under limited

4 Benefits to Borrower of SBA 504 LOAN LOW DOWN PAYMENT-10% down LONGER TERM on all financing FIXED RATE (10 or 20 years) BELOW MARKET RATE on SBA portion SOFT COSTS FINANCEABLE saves cash for working capital SBA LOAN IS ASSUMABLE CONTROL over long term costs

5 BENEFITS TO ECONOMIC DEVELOPMENT FINANCE PROFESSIONALS Attract growing companies to your community with an attractive real estate financing package. Help conserve your local loan program funds for other purposes by using SBA 504 loans for qualifying projects. Fill your business parks and increase the local property tax base for projects that may not qualify for conventional financing. Businesses lower debt payments translate into savings for more employment opportunities.

6 BENEFITS TO THE BANKS PROTECTION SBA takes a 2 nd lien position LOWER LOAN-TO-VALUE RATIO -low 50% advance rate on commercial real estate loan LEND TO MARGINAL CREDITS with potential Community Reinvestment Act CREDITS ATTRACT GROWING COMPANIES gain deposit relationships

7 INTEREST RATES at all-time historic lows! As of December 16, year rate: 5.465% 10-year rate: 4.151% Note: Rates are approximate. Rates are set when the project is complete, all funds have been disbursed and lien waivers have been collected NOT at the time of loan approval.

8 Who is Eligible? $ For-profit business- Sole Proprietorship Partnership Corporation Limited Liability Company $ Owner-occupied company, at least 51% of useable space if existing building, 60% for new construction $ Create or retain 1 job for every $65,000 of SBA funds (if a manufacturing company, 1 job for every $100,000)

9 504 Funding Limits $1.5 million for standard loans $2 million for public policy goals including those promoting energy efficiency & green projects $4 million for manufacturer & certain green projects Down Payment 10% for existing businesses 5% additional for special purpose buildings 5% additional injection for start-up Note: Sweat Equity does NOT qualify

10 Case Study Total Project Acquisition of building $ 900,000 Renovations $ 350,000 Machinery $ 175,000 Soft costs $ 75,000 $1,500,000

11 Conventional Financing Bank 75% of project $1,125,000 Borrower Injection 25% $ 375,000 Total Project Cost $1,500, Year amort 20 Year amort 7% adjustable rate payment $ 13,062 $ 8,722 8% adjustable rate payment $ 13,649 $ 9,410 9% adjustable rate payment $ 14,251 $ 10,122 Note: Soft costs are typically out of an out of pocket expense. Banks will BALLOON their loan in 3 5 years!

12 SBA Financing Bank First Mortgage (50%) $ 750,000 SBA Second Mortgage (40%) $ 600,000 Equity Borrower Injection (10%) $ 150,000 Total $1,500,000 Payment 10 Year 20 Year Bank assume 7%, adjustable $ 8,708 $ 5,815 SBA- fixed rate 20 yr at 5.5%. $ 4,127 $ 4,127 Total Payment SBA and Bank $12,835 $ 9,942 Note: Soft costs CAN be financed. Bank must offer 10-year term without any Balloon payments

13 Life Insurance Co. Financing Life Insurance 65% LTV $ 812,500 (Real estate ONLY) Borrower s s Cash Injection (35% ) $ 437,500 (Real Estate portion ONLY) TOTAL Real Estate Project $1,250,000 Borrower s s Payment at 7% fixed rate $ 6, year term on $812,500 Plus: Borrower s s out-of of-pocket equity for equipment and soft costs $ 250,000 which cannot be financed

14 Approval Process Credit is reviewed and approved by the Bank Credit is reviewed and approved by CDC Company at same time and submitted to SBA SBA approval takes approximately business days for written approval.

15 Loan Fees & Soft Costs The bank charges normal, reasonable fees on its loan SBA fees average less than 1.75% of the SBA loan (until( Stimulus funds expire) Soft costs and SBA fees may be financed and generally do not have to be supported by the appraised value

16 PREPAYMENT PENALTY Based on Debenture 5.00% rate (not Effective Rate) 4.50% 4.00% Half the term of the 3.50% loan 3.00% 2.50% Sliding, decreasing 2.00% penalty 1.50% 1.00% Penalty cannot be 0.50% 0.00% waived! Penalty - Year #1 Penalty - Year #7 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

17 Loan Closing TWO Closings with independent documents: Bank closes the total financing package and funds the construction phase with a construction note TWO BANK NOTES 1. Permanent loan for 50% of the project 2. Interim Note for 40% of the project ONE SBA NOTE SPEDCO closes SBA loan for 40% of the project. SBA sells debenture (bond) to pay-off the bank s s interim note

18 STIMULUS PACKAGE CHANGES Temporary elimination of fees for the SBA 504 loan program (extended by Obama Administration through February 2010, or until $125 million in subsidies are used up) SBA will no longer require a bank participation fee (currently.5% of the bank's permanent mortgage) The CDC loan origination processing fee of 1.5% formerly paid by the borrower is now paid by SBA.

19 STIMULUS PACKAGE CHANGES Job Creation Ratio Change: The job creation requirement has been permanently been changed to one job per $65,000 of SBA loan funds received.

20 STIMULUS PACKAGE CHANGES Debt Refinance rules rules permitted under limited circumstances has been permanently changed to the following: (A) The new loan involves business expansion (B) Collateralized by fixed assets (C) Existing debt incurred for benefit of small business (D) Proceeds used to acquire land, to construct or expand building or to purchase equipment (E) Borrower is current on all payments of existing debt for one year (F) New financing will provide better terms or interest rate (G) New financing will be used only for refinancing existing debt, or for costs related to project being financed.

21 Energy Efficient Public Policy Goals Projects that meet one of the following new energy goals are eligible for SBA 504 loans for between $2-4 million without needing to create or retain jobs: 1. Reduction of energy consumption by at least 10% (Qualifies for $4 million) 2. Increased use of sustainable designs that reduce the use of greenhouse gas and non-renewable resources and minimize harmful environmental impact. (Qualifies for $2 million) 3. Install equipment and/or upgrades that will process renewable energy sources. (Qualifies for $4 million)

22 The Broker/Developer s s Role Ask what amount of cash the borrower wishes to put into the project. If the answer is as little as possible and the building is owner occupied Suggest an SBA 504 loan. The broker can put the borrower in touch with a CDC company such as SPEDCO. The Broker becomes the HERO.

23 SPEDCO RESOURCES Our staff is here to support Borrowers in Minnesota and Western Wisconsin every step of the way! Andy Clausen, Steve Wertz, Russ Knighton, Tom DeLong, Sandy Pryor, Cherrie Rose, Sarah Bock, Mary Beth Watkins and Kristin Wood Open 7:00 a.m. 6:00 p.m (toll free: SPEDCO) or

Entrepreneur Academy: SBA 504 & 7(a) Loan Programs & Updates

Entrepreneur Academy: SBA 504 & 7(a) Loan Programs & Updates Entrepreneur Academy: SBA 504 & 7(a) Loan Programs & Updates Wendy J. Jeffers Sr. Lending Officer: SBA Programs wjeffers@sbacsav.com Mobile: 912.398.3090 or 888.287.2137 In full operation since September

More information

The FFCFC 504 Loan Program: A Unique Alternative for Small Business Fixed Asset Financing

The FFCFC 504 Loan Program: A Unique Alternative for Small Business Fixed Asset Financing Commercial Lenders The FFCFC 504 Loan Program: A Unique Alternative for Small Business Fixed Asset Financing The FFCFC 504 Loan Program is designed to help small business owners expand through the purchase

More information

SBA 504 Loan Program FACT SHEET

SBA 504 Loan Program FACT SHEET SBA 504 Loan Program FACT SHEET The Oakland County Business Finance Corporation (OCBFC) was certified under the Small Business Administration's (SBA) Certified Development Company program in September

More information

SBA 504 Expanded Refinancing Eligibility

SBA 504 Expanded Refinancing Eligibility SBA 504 Expanded Refinancing Eligibility When is a commercial mortgage considered eligible for refinancing under the new rules? 1. The loan must have funded at least 2 years ago 2. 85% of the loan proceeds

More information

Commercial Real Estate Comparison Pricing Summary

Commercial Real Estate Comparison Pricing Summary Wells Fargo Bank, N.A. Small Business Administration Lending Commercial Real Estate Comparison Pricing Summary Prepared For: Darrin Boyd Property Address: 6809 Corporate Drive Indianpolis, IN As of Date:

More information

CDA BLF LOAN APPLICATION

CDA BLF LOAN APPLICATION CDA BLF LOAN APPLICATION Name of of Business (Legal Name): Address: City, State, Zip: Business Phone // Fax: Federal Tax ID#: Principals Principal 1 Principal 2 Name: Address: City, State, Zip: Phone:

More information

SBA Policy Notice. TO: All SBA Employees CONTROL NO.: 5000-1382. SUBJECT: Reauthorization of 504 Debt EFFECTIVE: 05/26/2016. Refinancing Program

SBA Policy Notice. TO: All SBA Employees CONTROL NO.: 5000-1382. SUBJECT: Reauthorization of 504 Debt EFFECTIVE: 05/26/2016. Refinancing Program SBA Policy Notice TO: All SBA Employees CONTROL NO.: 5000-1382 SUBJECT: Reauthorization of 504 Debt Refinancing Program EFFECTIVE: 05/26/2016 The Small Business Jobs Act of 2010 (Jobs Act), P.L. 111-240,

More information

SBA 504 Loan Program Lender s Guide

SBA 504 Loan Program Lender s Guide Eligible Use of Proceeds: Land acquisition and improvements New construction Purchase of existing building(s) Renovations to existing building(s) Purchase of Machinery and Equipment (minimum of 10 years

More information

LOAN APPLICATION. Name of Business (Legal Name): Address: City, State, Zip: Business Phone: Federal Tax ID #:

LOAN APPLICATION. Name of Business (Legal Name): Address: City, State, Zip: Business Phone: Federal Tax ID #: LOAN APPLICATION Name of Business (Legal Name): Business Phone: Federal Tax ID #: Fax: Principals Name: Phone: Social Security #: Type of Business Sole Proprietorship Corporation Partnership Date Established

More information

SBA 504 Non Bank Business Model. Presented by Sok Cordell

SBA 504 Non Bank Business Model. Presented by Sok Cordell SBA 504 Non Bank Business Model Presented by Sok Cordell CH Capital Partners LLC (SBA Non Bank Lending Program) The information contained in this presentation has been obtained from sources believed to

More information

504 Loan Program. First Mortgage Lender Training

504 Loan Program. First Mortgage Lender Training 504 Loan Program First Mortgage Lender Training SBA programs are suited to businesses in various stages of development S T A R T U P Access to Capital 7a SCORE SBDC Management Assistant Programs Incentive

More information

#1 Q: How are we assured that Zion's does not share their/our portfolio information with the competition?

#1 Q: How are we assured that Zion's does not share their/our portfolio information with the competition? Responses to On-Line Questions from SBA 504 Teleseminar #1 Q: How are we assured that Zion's does not share their/our portfolio information with the competition? A: We operate entirely independent from

More information

he lll provide you With equipment Rick Nebraska and has goals since 1983. entrant. all your (602) 553-7814

he lll provide you With equipment Rick Nebraska and has goals since 1983. entrant. all your (602) 553-7814 Rick Berkheimer Arizonaa Bank & Trust welcomed Rick Berkheimer as Senior Vice President and Commercial Banker in March, 2010. Prior to joiningg AB&T, Berkheimer served as Market President and for Irwin

More information

SBA 504 Loan Program. Jobs, Communities

SBA 504 Loan Program. Jobs, Communities SBA 504 Loan Program Growing Small Businesses, Jobs, Communities What is 504? Economic Development Financing Tool Financesfixed assets for healthy, expanding businesses Low down payment to preserve cash

More information

GrowFL and SunTrust Bank Present: How To Utilize The SBA Loan Programs To Improve Cash Flow And Grow Your Business

GrowFL and SunTrust Bank Present: How To Utilize The SBA Loan Programs To Improve Cash Flow And Grow Your Business GrowFL and SunTrust Bank Present: How To Utilize The SBA Loan Programs To Improve Cash Flow And Grow Your Business GrowFL Webinar Series Date: March 5, 2012 Presented by: Hetal Engineer, SunTrust VP hetal.engineer@suntrust.com

More information

DISCLOSURE STATEMENT HCDC

DISCLOSURE STATEMENT HCDC DISCLOSURE STATEMENT HCDC (Hamilton County Development Co., Inc.; dba: Horizon Certified Development Company) U.S. Small Business Administration 504 Loan Program The SBA 504 Loan Program offers eligible

More information

August 16, 2011. CBNA Commercial Banking SBA Loan Programs

August 16, 2011. CBNA Commercial Banking SBA Loan Programs August 16, 2011 CBNA Commercial Banking SBA Loan Programs Table of Contents Topics Pages What is the SBA? 2 Program Benefits 3-4 SBA 7A Loan 5-7 SBA 504 8-11 Application Requirements 12 SBA Loan Process

More information

Financing Downtown Businesses

Financing Downtown Businesses Financing Downtown Businesses Presented by: David Kircher 1 Wisconsin Business Development Finance Corporation Certified Development Company Authorized to work with SBA 504 Program Fixed Asset Financing

More information

Administration Announces New Small Business Commercial Real Estate and Working Capital Programs

Administration Announces New Small Business Commercial Real Estate and Working Capital Programs Fact Sheet Administration Announces New Small Business Commercial Real Estate and Working Capital Programs President Obama announced today two new small business lending initiatives to help increase access

More information

LENDERS SUMMARY OF 504 RULES

LENDERS SUMMARY OF 504 RULES LENDERS SUMMARY OF 504 RULES Eligibility applies to Nine areas 1. Size 2. Credit Not Available Elsewhere 3. Personal Resources of the Borrower 4. Use of Proceeds 5. Types of Businesses 6. Job Criteria(Economic

More information

Georgia State Small Business Credit Initiative

Georgia State Small Business Credit Initiative GEORGIA DEPARTMENT OF COMMUNITY AFFAIRS Georgia State Small Business Credit Initiative FINANCIAL INSTITUTION PRESENTATION SEPTEMBER 2014 September 2014 History & Background of State Small Business Credit

More information

SBA and USDA Lending 1/28/2014. Benefits of SBA Financing. Small Business Administration and United State Department of Agriculture

SBA and USDA Lending 1/28/2014. Benefits of SBA Financing. Small Business Administration and United State Department of Agriculture SBA and USDA Lending Small Business Administration and United State Department of Agriculture Work in Partnership with Banks Encourage Banks to Lend to Businesses by Guaranteeing loans to reduce Lender

More information

NAVIGATING TODAY S CREDIT JUNGLE ALTERNATIVES

NAVIGATING TODAY S CREDIT JUNGLE ALTERNATIVES NAVIGATING TODAY S CREDIT JUNGLE AN OVERVIEW OF SBA FINANCING ALTERNATIVES November, 2011 Timothy D. Dixon Head of Small Business Administration (W) 216-514-5431 timothy.dixon@citizensbanking.com 1 Discussion

More information

SBA 504 Loans An Important Economic Development Tool for Community Lenders

SBA 504 Loans An Important Economic Development Tool for Community Lenders SBA 504 Loans An Important Economic Development Tool for Community Lenders A vital source of financing for your business customers. 2010 NADCO Presenters today Mindy Murray RMI, Jefferson City, MO Mike

More information

Making QLICIs under $5 Million work LISC small business loan fund. January 2012

Making QLICIs under $5 Million work LISC small business loan fund. January 2012 Making QLICIs under $5 Million work LISC small business loan fund January 2012 LISC/Morgan Stanley Small Business Loan Fund The goal of the fund is to provide low-cost, long-term financing to small businesses

More information

CITY OF REDWOOD FALLS PORT AUTHORITY REVOLVING LOAN FUND (RLF) APPLICATION

CITY OF REDWOOD FALLS PORT AUTHORITY REVOLVING LOAN FUND (RLF) APPLICATION CITY OF REDWOOD FALLS PORT AUTHORITY REVOLVING LOAN FUND (RLF) APPLICATION October, 1999 Revolving Loan Fund Guidelines City of Redwood Falls The purpose of the Revolving Loan Fund (RLF) is to provide

More information

WHAT IS A REAL (504) LOAN?

WHAT IS A REAL (504) LOAN? WHAT IS A REAL (504) LOAN? The Real Estate Advantage Loan (also known as a REAL or 504 Loan) is a 10% down, fixed-rate, long-term loan designed to expand capital access, filling a market gap in long-term

More information

Credit Connections Leveraging Resources to Strengthen Deals. U.S. Small Business Administration

Credit Connections Leveraging Resources to Strengthen Deals. U.S. Small Business Administration Credit Connections Leveraging Resources to Strengthen Deals U.S. Small Business Administration 1 Lenders Benefits of SBA Loans SBA s Guaranty reduces a Lender s Risk Helps lenders make loans with longer

More information

SBA 7(a) Government. Guaranteed Loan Program

SBA 7(a) Government. Guaranteed Loan Program SBA 7(a) Government Guaranteed Loan Program SBA Overview The U.S. Small Business Administration (SBA) Was Created By Congress In 1953 To Assist And Counsel Small Business Growth And Prosperity, Thereby

More information

GrowFL and SunTrust Bank Present: Business Acquisitions and Partner Buyouts How SBA Loans can be leveraged to help

GrowFL and SunTrust Bank Present: Business Acquisitions and Partner Buyouts How SBA Loans can be leveraged to help GrowFL and SunTrust Bank Present: Business Acquisitions and Partner Buyouts How SBA Loans can be leveraged to help GrowFL Webinar Series Date: September 4, 2012 Presented by: Hetal Engineer, SunTrust VP

More information

Commercial Real Estate. Financing Programs. The SBA Adv. www.sba.gov/ma. www.sba.gov. Programs and services to help you start, grow and succeed

Commercial Real Estate. Financing Programs. The SBA Adv. www.sba.gov/ma. www.sba.gov. Programs and services to help you start, grow and succeed Commercial Real Estate Programs and services to help you start, grow and succeed Financing Programs The SBA Adv /ma Programs and services to help you start, grow and succeed We are the SBA History: Part

More information

The SBA 504 Program: Details, Benefits, Challenges and How to Get Involved

The SBA 504 Program: Details, Benefits, Challenges and How to Get Involved The SBA 504 Program: Details, Benefits, Challenges and How to Get Involved January 29, 2015 Mark Abell, SVP & SBA Division Manager Vectra Bank Colorado What do you picture when you hear Small Business?

More information

The Gardens At Callaway CARE Seminar Financial Solutions for your Business. Richard Fairey, SVP Market President May 10, 2005

The Gardens At Callaway CARE Seminar Financial Solutions for your Business. Richard Fairey, SVP Market President May 10, 2005 The Gardens At Callaway CARE Seminar Financial Solutions for your Business Richard Fairey, SVP Market President May 10, 2005 Page 2 Page 3 Page 4 Page 5 About Wachovia Assets - $507 billion Deposits -

More information

SBA Finance Options. Fourth National Rural Grocery Summit June 9 10, 2014

SBA Finance Options. Fourth National Rural Grocery Summit June 9 10, 2014 SBA Finance Options Fourth National Rural Grocery Summit June 9 10, 2014 SBA What it is/what it does Federal government agency created in 1953 Purpose to help potential and existing small businesses start,

More information

LISC Small Business Loan Fund

LISC Small Business Loan Fund LISC Small Business Loan Fund P R E S E N T E D BY: K EN ROSENTHAL CDC S M A L L B U S I N E S S F I NA N C E Kevin Boes LISC N e w M a r ke t s S u p p o r t C o m p a ny LISC Small Business Loan Fund

More information

TIME TO BUY. Small businesses that have ridden out the economic storm may. be well positioned to take advantage of a buyer s market for

TIME TO BUY. Small businesses that have ridden out the economic storm may. be well positioned to take advantage of a buyer s market for October 2011 TIME TO BUY Your business is growing and you re tired of renting space. Here are the financing options you can consider for purchasing commercial property. Table of Contents Benefits of Ownership...2

More information

COMMUNITY INVESTMENT PARTNERSHIP PROGRAM REVOLVING LOAN FUND GUIDELINES

COMMUNITY INVESTMENT PARTNERSHIP PROGRAM REVOLVING LOAN FUND GUIDELINES INTRODUCTION: COMMUNITY INVESTMENT PARTNERSHIP PROGRAM REVOLVING LOAN FUND GUIDELINES The Northampton County Department of Community and Economic Development (NCDCED) has capitalized a Revolving Loan Fund

More information

Wright County Enterprise Loan Fund Policies and Procedures

Wright County Enterprise Loan Fund Policies and Procedures Wright County Enterprise Loan Fund Policies and Procedures Established 1993 Revised December 1998 Revised December 2002 Revised in 2004 & approved by commissioners January 2005 1 I. OVERVIEW The purpose

More information

Project Financing Tools

Project Financing Tools OVERVIEW The City of Ramsey has a number of financial tools available for economic development projects. In general, tools include gap financing loans, SBA loans/loan guarantees and project based local

More information

file:///c:/my Documents/My Webs/myweb2/index.htm

file:///c:/my Documents/My Webs/myweb2/index.htm file:///c:/my Documents/My Webs/myweb2/index.htm Ocean State Business Development Authority, Inc. is a Certified Development Company, licensed and regulated by the US Small Business Administration (SBA)

More information

Understanding Loans and Other Programs Available for Certified Minority Business Enterprises

Understanding Loans and Other Programs Available for Certified Minority Business Enterprises Understanding Loans and Other Programs Available for Certified Minority Business Enterprises Presented by Allen McConnell, Manager Minority Business Development Division Slide 1 Access to Financial Assistance

More information

2030 Districts. Project. Financing. Tookit. Small Business Association. Financing

2030 Districts. Project. Financing. Tookit. Small Business Association. Financing 2030 Districts Project Financing Tookit Small Business Association Financing Project Financing Toolkit Small Business Association Financing (SBA) The Small Business Association s (SBA) core programs offer

More information

SBA L SBA endi ding Program Overview

SBA L SBA endi ding Program Overview SBA Lending Program Overview SBA Loans The U.S. Small Business Administration (SBA) offers numerous loan programs to assist small businesses. The SBA is primarily a guarantor of loans made by banks and

More information

SBA 504 Debenture Program Long-term financing for fixed asset acquisitions and expansions

SBA 504 Debenture Program Long-term financing for fixed asset acquisitions and expansions SBA 504 Debenture Program Long-term financing for fixed asset acquisitions and expansions Economic Development Objectives of SBA 504 Economic Development Objectives maximum 504 Loan Job Factor Job Creation/Job

More information

DEBT REFINANCE APPLICATIONS. How to Avoid Screenouts 2010 NADCO

DEBT REFINANCE APPLICATIONS. How to Avoid Screenouts 2010 NADCO DEBT REFINANCE APPLICATIONS How to Avoid Screenouts 2010 NADCO Topics to be Covered Why revisit debt refinancing Amount of debt that can be refinanced Debt refinancing requirements Documentation to be

More information

Graduate School of Colorado SBA lending Presentation

Graduate School of Colorado SBA lending Presentation Graduate School of Colorado SBA lending Presentation SBA lending course summary The course will provide an overview and comparison of SBA 7a, SBA 504 and USDA Business & Industry (B&I) loan programs. SBA

More information

W i n t r u s t B a n k

W i n t r u s t B a n k W i n t r u s t B a n k 1 WHO ARE WE Wintrust Financial is a financial services holding company We provide traditional community banking services, commercial banking, wealth management, commercial insurance

More information

FAIRM. Economic Development Authority. Revolving Loan Fund Guidelines

FAIRM. Economic Development Authority. Revolving Loan Fund Guidelines Revolving Loan Fund Guidelines The Fairmont 's Revolving Loan Fund is available within the City Limits of Fairmont, Minnesota. The program works in partnership with local lending institutions to help 'fill

More information

First Industries Fund

First Industries Fund First Industries Fund First Industries is one of 19 programs in the June 2004 economic stimulus package. It provides $100 million for agriculture, and $50 million for tourism. Final guidelines were approved

More information

504 Your Small Business

504 Your Small Business 504 Your Small Business 1 Is the 504 loan program appropriate for your business? 2 Duke s Clothing in Wahiawa Gail Nakasone 3 4 Uptown Chevron In Wailuku, Maui Alvin Makimoto 5 6 Text Box Miyake Concrete

More information

Minority Business Development Division Allen McConnell, Manger (614) 752-4833 Allen.McConnell@development.ohio.gov www.development.ohio.

Minority Business Development Division Allen McConnell, Manger (614) 752-4833 Allen.McConnell@development.ohio.gov www.development.ohio. Minority Business Development Division Allen McConnell, Manger (614) 752-4833 Allen.McConnell@development.ohio.gov www.development.ohio.gov The State of Ohio is an Equal Opportunity Employer and Provider

More information

Rural Business Enterprise Loan Program (RBE)

Rural Business Enterprise Loan Program (RBE) Courthouse PO Box 607 Carlton, MN 55718 Rural Business Enterprise Loan Program (RBE) Mailing Address: Carlton County Economic Development Office PO Box 607 Carlton, MN 55718 (218) 384-9597 or (218)384-9564

More information

Accounts Payable Accounts Receivable Amortization Annual Interest Rate Annual Percentage Rate Attorney Fees Bridge Financing

Accounts Payable Accounts Receivable Amortization Annual Interest Rate Annual Percentage Rate Attorney Fees Bridge Financing Accounts Payable Accounts payable are business debts that must be paid off within a relatively short period of time, as opposed to long term debt such as mortgage loans and equipment loans. Accounts payable

More information

SMALL BUSINESS JOBS ACT DEBT REFINANCING

SMALL BUSINESS JOBS ACT DEBT REFINANCING SMALL BUSINESS JOBS ACT DEBT REFINANCING Final Regulations 2011 NADCO Webinar Presenters - NADCO Mary Mansfield, Bay Colony Development Corp., NADCO Vice Chair of Regulatory Affairs and 504 Loan Closing

More information

Section B. Maximum Mortgage Amounts on No Cash Out/Cash Out Refinance Transactions Overview

Section B. Maximum Mortgage Amounts on No Cash Out/Cash Out Refinance Transactions Overview Section B. Maximum Mortgage Amounts on No Cash Out/Cash Out Refinance Transactions Overview In This Section This section contains the topics listed in the table below. Topic Topic Name See Page 1 No Cash

More information

Section C. Maximum Mortgage Amounts on Streamline Refinances Overview

Section C. Maximum Mortgage Amounts on Streamline Refinances Overview Section C. Maximum Mortgage Amounts on Overview In This Section This section contains the topics listed in the table below. Topic Topic Name See Page 1 General Information on 3-C-2 2 Without an Appraisal

More information

Transaction Information. Michael Jones and Mary Stone 123 Anywhere Street. Anytown, ST 12345. Steve Cole and Amy Doe 321 Somewhere Drive

Transaction Information. Michael Jones and Mary Stone 123 Anywhere Street. Anytown, ST 12345. Steve Cole and Amy Doe 321 Somewhere Drive Closing Disclosure This form is a statement of final loan terms and closing costs. Compare this document with your Loan Estimate. Closing Information Date Issued 4//20 Closing Date 4//20 Disbursement Date

More information

Business Financing. An Article by Michael L. Messer and Thomas L. Hofstetter SCHENCK, PRICE, SMITH & KING, LLP

Business Financing. An Article by Michael L. Messer and Thomas L. Hofstetter SCHENCK, PRICE, SMITH & KING, LLP Business Financing An Article by Michael L. Messer and Thomas L. Hofstetter SCHENCK, PRICE, SMITH & KING, LLP Even in these challenging economic times, businesses still have a need to grow and to obtain

More information

SunTrust Your SBA Lending Partner

SunTrust Your SBA Lending Partner SunTrust Your SBA Lending Partner Presented by: Eric Hicklin All credit subject to SBA and SunTrust criteria. 2009 SunTrust Banks, Inc. SunTrust is a federally registered service mark of SunTrust Banks,

More information

How To Finance A Business With An Sba 7(A) Loan

How To Finance A Business With An Sba 7(A) Loan Small Business Programs and Resources Start-Up Business Weak Collateral Longer Repayment Terms Unfamiliar Industry Achieve community economic development through job creation and retention by providing

More information

Q: What types of businesses/industries can benefit from the SBA loan programs? A: Most small owner-operated business can benefit from SBA loans

Q: What types of businesses/industries can benefit from the SBA loan programs? A: Most small owner-operated business can benefit from SBA loans Interview with Alan Thomes, President, SBA Loan Division State Bank and Trust Company For many new start-ups and small businesses, an SBA loan may be an appropriate form of financing. In this interview

More information

Closing Disclosure. Loan Terms. Projected Payments. Costs at Closing

Closing Disclosure. Loan Terms. Projected Payments. Costs at Closing Closing Disclosure This form is a statement of final loan terms and closing costs. Compare this document with your Loan Estimate. Closing Information Date Issued Closing Date Disbursement Date Settlement

More information

SBA Business Loan Programs

SBA Business Loan Programs SBA Business Loan Programs Horizon Certified Development Company Horizon Certified Development Company Incorporated in 1982 as Hamilton County Development Co., Inc. (HCDC) HCDC is a Certified Development

More information

ALTERNATIVE FINANCING SOURCES FOR YOUR SMALL BUSINESS

ALTERNATIVE FINANCING SOURCES FOR YOUR SMALL BUSINESS 7605B/7601 ALTERNATIVE FINANCING SOURCES FOR YOUR SMALL BUSINESS Revised October 1999 University of Wisconsin System This publication has been developed by the Wisconsin SBDC in partnership with the U.

More information

Solar Leases FHA/VA. Term of lease must be greater than the loan term

Solar Leases FHA/VA. Term of lease must be greater than the loan term Solar Leases FHA/VA Term of lease must be greater than the loan term The monthly payment for the lease must be included in the debt to income ratios for the borrower Must have like comps (with solar panel

More information

FHA Office of Single Family Housing. Training: Origination Through Post-Closing/ Endorsement

FHA Office of Single Family Housing. Training: Origination Through Post-Closing/ Endorsement Training: Origination Through Post-Closing/ Endorsement 1 Module 8A Programs and Products: Refinance Single Family Housing Policy Handbook 4000.1 Title II Insured Housing Program Forward Mortgages Origination

More information

SBA Lending - Introduction

SBA Lending - Introduction SBA Lending - Introduction Facilitated by: Jim Kahler - Texans Credit Union Dale Donnell SBA Consulting, LLC Perry Espie US Small Business Administration American Recovery and Reinvestment Act 90% guaranty

More information

Use this section to learn more about business loans and specific financial products that might be right for your company.

Use this section to learn more about business loans and specific financial products that might be right for your company. Types of Financing Use this section to learn more about business loans and specific financial products that might be right for your company. Revolving Line Of Credit Revolving lines of credit are the most

More information

U.S. Small Business Administration 504 Loan Program Energy Public Policy Goals. ACEEE May 12, 2014

U.S. Small Business Administration 504 Loan Program Energy Public Policy Goals. ACEEE May 12, 2014 U.S. Small Business Administration 504 Loan Program Energy Public Policy Goals ACEEE May 12, 2014 1 What is the 504 Loan Program? The SBA 504 Loan program is a powerful economic development loan program

More information

Mortgage Terms Glossary

Mortgage Terms Glossary Mortgage Terms Glossary Adjustable-Rate Mortgage (ARM) A mortgage where the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate. You may also see

More information

11.437 Financing Community Economic Development Class 6: Fixed Asset Financing

11.437 Financing Community Economic Development Class 6: Fixed Asset Financing 11.437 Financing Community Economic Development Class 6: Fixed Asset Financing I. Purpose of asset financing Fixed asset financing refers to the financing for real estate and equipment needs of a business.

More information

www.development.ohio.gov

www.development.ohio.gov Minority Business Development Division Joseph Brooks (614) 466-5065 joseph.brooks@development.ohio.gov www.development.ohio.gov The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services

More information

Achieving your goals through Financing. Cooperative Financing Models that may work for you

Achieving your goals through Financing. Cooperative Financing Models that may work for you Achieving your goals through Financing Cooperative Financing Models that may work for you Overview Cooperative Financing Overview of the environment Interest Rates Why now is the best time to borrow Reasons

More information

Financing for the Car Wash Industry. WHITE PAPER: An Overview of SBA 7(a) Financing

Financing for the Car Wash Industry. WHITE PAPER: An Overview of SBA 7(a) Financing Financing for the Car Wash Industry WHITE PAPER: An Overview of SBA 7(a) Financing INTRODUCTION If you are looking to purchase, build, upgrade, or refinance a car wash you already own, you may be surprised

More information

PURCHASE AREA DEVELOPMENT DISTRICT - Disclosure Statement - Information about the SBA 504 loan program available through PADD

PURCHASE AREA DEVELOPMENT DISTRICT - Disclosure Statement - Information about the SBA 504 loan program available through PADD Please review, read and sign this Disclosure Statement if applying for an SBA 504 loan through PADD. PURCHASE AREA DEVELOPMENT DISTRICT - Disclosure Statement - Information about the SBA 504 loan program

More information

CDFI Small Business Growth Collaborative Product and Pricing Summary November 14, 2011

CDFI Small Business Growth Collaborative Product and Pricing Summary November 14, 2011 CDFI Small Business Product and Pricing Summary November 14, 2011 Small Business Loans Range $1,000-$10,000,000 4%-14.99% 6 months - 240 months Green/Energy Loans Range $15,000-$5,000,000 2%-14% 12 Months-120

More information

Important Information Regarding TILA-RESPA Integrated Disclosure (TRID) Rule

Important Information Regarding TILA-RESPA Integrated Disclosure (TRID) Rule Important Information Regarding TILA-RESPA Integrated Disclosure (TRID) Rule Notice to students: If your course contains information on the Truth in Lending Act (TILA) and the Real Estate Settlement Procedure

More information

Swift County Loan Program Guidelines and Application

Swift County Loan Program Guidelines and Application Swift County Rural Development Authority 1228 Atlantic Ave Benson MN 56215 Swift County Loan Program Guidelines and Application Swift County RDA 1228 Atlantic Ave Benson MN 56215 320-842-4769 rda@co.swift.mn.us

More information

The Adam Lee Team 480-331-3501 Info@theadamleeteam.com. Alternatives to Foreclosure & REASONS WHY SHORT SALES ARE THE BETTER SOLUTION!

The Adam Lee Team 480-331-3501 Info@theadamleeteam.com. Alternatives to Foreclosure & REASONS WHY SHORT SALES ARE THE BETTER SOLUTION! The Adam Lee Team 480-331-3501 Info@ Alternatives to Foreclosure & REASONS WHY SHORT SALES ARE THE BETTER SOLUTION! Options When Facing Foreclosure 1. Do Nothing: If you choose to do nothing, you will

More information

An Introduction to the SBA 7(a) and 504 Loan Programs

An Introduction to the SBA 7(a) and 504 Loan Programs An Introduction to the SBA 7(a) and 504 Loan Programs Edward W. Ahart, Esq. Thomas L. Hofstetter, Esq. 220 Park Avenue Florham Park, NJ 07932 (973) 539-1000 Partner at Schenck Price Smith & King, LLC in

More information

NEW CONSTRUCTION - LAND OWNED FOR LESS THAN TWO YEARS Maximum Mortgage Amount

NEW CONSTRUCTION - LAND OWNED FOR LESS THAN TWO YEARS Maximum Mortgage Amount ( Page 1 of 6) NEW CONSTRUCTION - LAND OWNED FOR LESS THAN TWO YEARS Maximum Mortgage Amount When the land was owned for less than two years, the mortgage may not exceed 97 percent of the lesser of Purchase

More information

Lending Guide. Section 604.02 Underwriwting Eligiblity Transactions

Lending Guide. Section 604.02 Underwriwting Eligiblity Transactions Continuity of Obligation A continuity of obligation is required for all refinance transactions. A continuity of obligation exists when one or more of the following occur: At least one borrower on the existing

More information

How To Help A Small Business Fund Fund

How To Help A Small Business Fund Fund LISC Small Business Lending Update PRESENTED BY: Kevin Boes New Markets Support Company Kelsey Hamory New Markets Support Company Small Business Lending Products LISC/NMSC have developed a toolkit of products

More information

NEGOTIATING LOAN AGREEMENT COVENANTS IN OIL & GAS TRANSACTIONS. ABA Spring Business Law Meeting Loan Documentation Subcommittee

NEGOTIATING LOAN AGREEMENT COVENANTS IN OIL & GAS TRANSACTIONS. ABA Spring Business Law Meeting Loan Documentation Subcommittee NEGOTIATING LOAN AGREEMENT COVENANTS IN OIL & GAS TRANSACTIONS ABA Spring Business Law Meeting Loan Documentation Subcommittee Tom Pepevnak, Partner March 22, 2012 Commonly Negotiated Covenants Acquisitions

More information

First Time Home Buyer Glossary

First Time Home Buyer Glossary First Time Home Buyer Glossary For first time home buyers, knowing and understanding the following terms are very important when purchasing your first home. By understanding these terms, you will make

More information

BUSINESS DEVELOPMENT LOAN POOL (BDPL) GUIDELINES & APPLICATION MENOMONEE FALLS, WISCONSIN

BUSINESS DEVELOPMENT LOAN POOL (BDPL) GUIDELINES & APPLICATION MENOMONEE FALLS, WISCONSIN BUSINESS DEVELOPMENT LOAN POOL (BDPL) GUIDELINES & APPLICATION MENOMONEE FALLS, WISCONSIN BUSINESS DEVELOPMENT LOAN POOL (BDLP) VILLAGE OF MENOMONEE FALLS, WISCONSIN PARTICIPATING PARTNERS Participating

More information

CENTERPOINT 504 NFP SBA SECTION 504, ASSISTANCE AGREEMENT

CENTERPOINT 504 NFP SBA SECTION 504, ASSISTANCE AGREEMENT CENTERPOINT 504 NFP SBA SECTION 504, ASSISTANCE AGREEMENT AGREEMENT made this day of, 20 by and between CenterPoint 504, nfp, an Illinois nonprofit corporation and Certified Development Company ( CDC )

More information

ECONOMIC DEVELOPMENT. finance programs

ECONOMIC DEVELOPMENT. finance programs ECONOMIC DEVELOPMENT finance programs FINANCE PROGRAMS In South Dakota, we re ready to work. Our people are dedicated, prepared and productive. Our business climate is second to none. And our financing

More information

Revolving Loan Fund for Industrial Development Summary *

Revolving Loan Fund for Industrial Development Summary * Owatonna Economic Development Authority (EDA) City of Owatonna Revolving Loan Fund for Industrial Development Summary * Program Purpose: How It Works: Project Eligibility: Minimum Requirements: Use of

More information

The SBA 504 Certified Development Company Loan Program

The SBA 504 Certified Development Company Loan Program The SBA 504 Certified Development Company Loan Program Presented by: Carolyn Engel Cynthia Esterling Great Lakes Asset Corporation Jason Monnett Today s Agenda 2 1. 504 Basics: Benefits, Eligibility &

More information

SBA Programs to Help You Start & Grow Your Small Business

SBA Programs to Help You Start & Grow Your Small Business SBA Programs to Help You Start & Grow Your Small Business U.S. Small Business Administration 6501 Sylvan Road, Suite 100 Citrus Heights, CA 95610 916-735-1700 www.sba.gov 08?11 BUSINESS LOANS & THE SBA

More information

USDA Business & Industry (B&I) Guaranteed Loan Program

USDA Business & Industry (B&I) Guaranteed Loan Program USDA Business & Industry (B&I) Guaranteed Loan Program B&I Program To Create And Maintain Employment And Improve Economic And Environmental Climate In Rural Communities Administered By The Rural Business

More information

Chapter 3. Maximum Mortgage Amounts on Refinance Transactions Table of Contents

Chapter 3. Maximum Mortgage Amounts on Refinance Transactions Table of Contents Chapter 3, Table of Contents Chapter 3. Maximum Mortgage Amounts on Refinance Transactions Table of Contents Section A. Refinance Transaction Overview Overview... 3-A-1 1. General Information on Refinance

More information

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,

More information

USDA Guarantee + NMTC Equity = Facility Financing for a Start Up Charter School

USDA Guarantee + NMTC Equity = Facility Financing for a Start Up Charter School USDA Guarantee + NMTC Equity = Facility Financing for a Start Up Charter School Berkshire Arts & Technology Public Charter School Adams, MA The BArT Charter School opened its doors in the fall of 2004

More information

A Guide to Federal, State and Regional Loan and Grant Programs for Agribusiness

A Guide to Federal, State and Regional Loan and Grant Programs for Agribusiness Illinois Office of Associate Director April 2004 Environmental 1021 North Grand Avenue East Protection Agency Springfield, IL 62706 Governor Rod Blagojevich Director Renee Cipriano A Guide to Federal,

More information

Q&A for Small Business Owners

Q&A for Small Business Owners Q&A for Small Business Owners What did the Obama Administration announce today? The Treasury Department will commit up to $15 billion to help unlock the secondary markets for small business loans. By purchasing

More information

Pennsylvania Minority Business Development Authority Loan

Pennsylvania Minority Business Development Authority Loan Pennsylvania Minority Business Development Authority Loan Program Guidelines November 2015 Commonwealth of Pennsylvania Tom Wolf, Governor Department of Community & Economic Development Table of Contents

More information

Overview of SBA Loan Programs

Overview of SBA Loan Programs Overview of SBA Loan Programs U.S. Small Business Administration San Francisco District Office 455 Market Street, Suite 600 San Francisco, CA 94105 (415)744-6820 SBA Loan Programs The Big 3 SBA Microloan

More information

SMALL BUSINESS REVOLVING LOAN FUND GUIDELINES

SMALL BUSINESS REVOLVING LOAN FUND GUIDELINES SMALL BUSINESS REVOLVING LOAN FUND GUIDELINES 1.0 INTRODUCTION Fay-Penn Economic Development Council has established a Small Business Loan Fund. The Small Business Loan Fund Program is designed to stimulate

More information