504
Advantages

Borrower Benefits

• 90% financing on most projects
• Below market rates
• 20 year fixed rate on real estate
• 10 year fixed rate on fixed equipment
• Improves cash flow
• Minimal out of pocket expenses
• Working capital preservation
• Fully amortizing 10 and 20 year loan
• Collateral limited to the asset financed

Lender Benefits

• 90% financing increases potential opportunities
• Strong collateral position with 1st lien
• Reduced risk with only 50% LTV
• Community Reinvestment Act credits on all 504 loans
• 9 month project look-back for properties in process
• Blended interest rate offered borrower
• Balance sheet management

Community Benefits

• 504 puts excess revenues back into the community
• 504 program strives to meet Public Policy Goals to enhance success
• 504 programs create one new job for every $65,000 funded