Do you have some questions for us?
Banks refer borrowers to The 504 Company. Community Partners, who are economic development companies, IDAs, EDZ companies and chambers of commerce, make many referrals, as well.
We can help a business refinance its debt in order to reduce current interest rates and/or convert from a floating rate to a fixed rate, reduce monthly payments by extending the loan maturity, convert short-term debt to long-term debt, or use the equity that’s built up in fixed assets to provide cash for the growth of the business.
This can be done through the Community Advantage Loan Program.
We have financed many different types of equipment for our borrowers ranging from desks, chairs and computers to industrial handling and manufacturer's equipment, vehicles, construction equipment, printing presses, airplanes, barges, trains and more.
Typically, we match the repayment term of the loan with the useful life of the equipment being purchased ranging from three to 10 years. For equipment that has a useful life of greater than 10 years, such as a printing press, we can utilize the SBA 504 loan program. This program allows for up to 10 years repayment with a fixed interest rate and as little as a 10 percent down payment. It is only available for the acquisition of equipment, not for refinancing of equipment.
The SBA 504 Loan Program is administered through The 504 Company. This fixed asset economic development program is designed to promote growth and job creation in small and medium-sized businesses and is intended for use by businesses with good track records and promising growth opportunities.
Loans from $25,000 to $5 million can be made for land acquisition and improvements, building acquisition and/or construction, and machinery and equipment. Applicants must have net worth of less than $15 million and net profit of less than $5 million.
Please see our Loan Application Checklist for a useful tool to help borrowers gather the necessary information The 504 Company will need to evaluate the business.