Services
Time to Expand? What Next?
Found that perfect building or track of land, but your banker says you need 20% down? Can't afford 20%? Plus pay for renovations and soft costs and still have enough working capital left over for the expansion? Well, REDCO, your local SBA 504 Certified Development Company can help by making you a loan to buy that building through the SBA 504 Loan Program. Only 10% down by you. All eligible project costs are included-land, building, renovation and soft costs. The loans are long term and provide a low fixed interest rate. The SBA 504 Loan Program can even finance the machinery you need to buy.
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Excellent loan to value |
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U.S. Government as subordinate lender |
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Market interest rate on participating first trust lender's loans |
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Community Reinvestment Act credits for the bank |
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504 effectively extends the lender's ability to service large clients |
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Timely loan packaging and approval processing |
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No SBA paperwork for lender |
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REDCO Can Answer All Your Loan Questions
The REDCO Professionals work directly with you as they prepare the entire SBA application on your behalf. REDCO fits all the pieces together to ensure your loan package meets the 504 program guidellines and the credit criteria of the SBA.
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SBA Definition of the 504 Loan Program: Certified Development Company (CDC),
a SBA 504 Loan Program
FUNCTION: Provides long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for expansion or modernization. Typically an SBA 504 project includes a loan obtained from a private-sector lender with a senior lien, a loan secured from a CDC (funded by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the total eligible project costs, and a contribution of at least 10 percent equity from the borrower.
CUSTOMER: Small businesses requiring owner-occupied “brick and mortar” financing
DELIVERED THROUGH: Certified development companies (private, nonprofit corporations set up to contribute to the economic development of their communities or regions)
www.sba.gov/financing/sbaloan/cdc504.html
SBA is committed to helping small businesses in the U.S. and in Virginia. Helpful Links for Small Businesses, Woman Owned Business and Minority Owned Businesses.
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