A few benefits of SBA 504 Loans……

As a 504 certified development company, (SCEDCO) can help you by getting you a loan through the SBA 504 loan program. Projects typically only require a 10% down payment. Loans for special purpose facilities or new businesses require a larger down payment. All project costs are included-land, building, renovation and soft costs. Our loans are long term and provide a low fixed interest rate. The SBA 504 loan program can even finance large pieces of machinery you need to purchase.

ADVANTAGES OF SBA 504 OVER CONVENTIONAL FINANCING

Low down payment. Typically, just 10% instead of the 25%-40% down payment required by most banks. Keep your working capital to grow on instead of putting down a large down payment on your new building.

Fixed rate on the SBA 504 portion. You don't have to worry about the Prime-lending rate going up on our portion of the financing, because our rates are fixed for 20 years. This allows you to plan ahead for your company. Click here for the current interest rate.

Long term. SBA 504 loans are for 10 years (equipment loans) or 20 years (real estate loans). Because the CDC is in second lien position, the bank or other lender doing the 50% first lien loan is often willing to lend for a longer than normal term. The longer amortization makes your monthly payments lower.

Low interest rate. SBA 504 loan rates, including the servicing margin, are granted at very low rates for secondary business mortgage financing. The blended rate between the bank portion and the Certified Lender's 504 portion can help make the project affordable for you.

Questions:
How can my 504 funds be used?
What types of businesses are eligible for 504 financing?
Is my company too large or too successful for a 504 loan?
How are 504 projects structured? Can I get prequalified?
How big can 504 projects be?
When is a larger down payment required?
Who determines the rates on the 504?
What are the terms of the convention or bank portion of the financing?
What about job creation requirements?
How do I apply?


How can my 504 funds be used?
504 loans can be used for land or building acquisition, building construction or remodeling or acquisition of heavy equipment and fixtures. Your business must become the primary occupant of the property financed.

What types of businesses are eligible for 504 financing?
Manufacturers, wholesale, service, professional, service and retail businesses are all eligible. Applicant firms must have proven ability to repay the loan, but well-structured new ventures may also qualify.

Is my company too large or too successful for a 504 loan?
Our goal is to lend capital to successful businesses, and we lend to some pretty large "small businesses." Almost all privately-held for-profit companies are small based on the definitions in SBA regulations. As far as success, the more successful you are, the easier it is for us to finance your project.

How are 504 projects structured?
Visit the "Your Project" page to get a preliminary quote right now. Call or e-mail us to fine tune the numbers.

Can I get prequalified?
Success Capital can prequalify your company quickly at no cost to you with minimal paperwork and no SBA forms. Just call us to discuss your project.

How big can 504 projects be?
Typical project sizes range from $200,000 to $5 million or more in size with the SBA portion a maximum of $1.3 million. Congress is in the process of passing legislation to increase 504 limits to accommodate a wider size range of loans. Contact us for up to date news.

When is a larger down payment required?
Equity of 15-20% is required for start-up and businesses with irregular profitability, lack of historical debt service ability, a short track record or for single purpose properties

Who determines the rates on the 504?
The national bond market. Loans are pooled monthly, securitized and sold with rates tending to follow 10 Year Treasury Bill trends.

What are the terms of the convention or bank portion of the financing?
You negotiate the rates and terms with the bank of your choice. The SBA requires a minimum term of 10 years on the bank portion of the financing. Success Capital can help you locate and shop rates with interested banks.

What about job creation requirements?
I've heard you have to create a lot of jobs to qualify. Job creation is only one of the goals of the program. Credit-worthy requests qualify regardless of job creation if they are in a Labor Surplus Area or meet any one of nine "Public Policy Goals." Call us to check out your situation.

How do I apply? Just call us at (209) 521-9372 or contact one of our loan officers by E-mail (see contacts). We will be happy to assist you with your project.

Success Capital Expansion & Development Corporation
1420 F Street 2nd Floor
Modesto, CA 95354
Phone: (209) 521-9372