Email Marketing Small Business Loans
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Development Loan: In some
cases, a short-term loan securitized by commercial real estate or across other
assets for the improvement of real estate property and/or infrastructure such
as: roads, utilities, etc.
Long-term Alternative with the SBA 504
loan program.
An alternative to the short-term, "hard-money" or equity
investment route is the long-term SBA 504 program. This program provides you with
long-term, fixed-rate financing for major fixed assets (land, buildings, etc.).
The 504 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; and 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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