Long-term, fixed-rate loan for major fixed assets
An SBA 504 is a two-part loan program offered in partnership with a financial institution, SBA, and TEDC to help small businesses purchase large capital assets like land, buildings, and long-life equipment. The 504 portion is long-term with a permanently fixed interest rate.
TEDC’s share of the project could be up to 40 percent of total project costs. The bank provides 50% of project costs. Your equity is only 10%.
Refinancing options are available on qualified debt originated at least 2 years ago.
Funding is available for large and small projects. SBA 504 loans range from $250,000 to $5.5 million, with total projects exceeding $13 million. Eligible companies must be considered small by SBA size standards (tangible net worth not to exceed $15 million; and two-year average net income not to exceed $5 million).
Here’s an example of the basic structure of a $1,000,000 SBA 504 loan from TEDC Creative Capital:
- $400,000 - TEDC/SBA 504 loan (or 40% of the cost)
- $500,000 - Bank partner (or 50% of the costs)
- $100,000 - Your cash equity (or 10%)*
*Great news!! TEDC Creative Capital may be able to assist with your cash injection!
Contact us now to find out if you qualify for an SBA 504 loan.
Important Loan Details
Covers up to 40% of the cost, your bank provides 50%, and you contribute the remaining percentage
-
Used for fixed assets: land, building, equipment
-
Most eligible companies have fewer than 500 employees
-
Available to Oklahoma small businesses
Other Lending Options to Consider
