SBA 504 Loan Benefits
Our loan program helps
The 504 Loan Program provides approved small businesses with long-term,
Eligible Business Size
Average net income of $5 million or less after federal income taxes for the preceding two years prior to application.
Typical Loan Structure
50% bank loan
40% HIDC/SBA loan
10% borrower down payment
Proceeds Use
Purchase existing building
Land acquisition and improvements (may include soft costs)
The construction of new facilities or modernizing, renovating or converting existing facilities.
Program Requirements
51% owner occupancy for
60% owner occupancy for new construction.
Collateral
Guarantor
Personal/guarantees of the principal owners of 20% or more ownership
Fees
All SBA 504 Loan fees may be financed in the 504
Interest rates on SBA 504 loans are correlated with the current market rate U.S. Treasury
Borrower Benefits
- Low down payment for capital asset financing – as low as 10%
- Long-term fixed rate financing – 25 years
- No “balloon” payments
- Reimbursable closing costs up to $2,500
- Turnkey projects financing
- Collateral requirements
are generally project specific
Lender Benefits
- Lower credit risk profile, easier approvals
- Ability to offer more aggressive pricing and loan structures
- Core asset holding or secondary market opportunities
- Leverage ROE and ROA Performance measures
- HIDC handles SBA interface, approval
and reporting
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Housatonic Industrial Development Corp. • 57 North Street, Suite 407 • Danbury CT 06810
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