SBA 504 Loan

An SBA 504 is a two-part loan program offered in partnership with a financial institution, the U.S. Small Business Administration, 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.

 

The SBA provides up to 40 percent of total project costs. The bank provides 50% of project costs. Your equity injection is only 10% of the total project cost.

 

Refinancing options are available on qualified debt originated at least 2 years ago.

 

TEDC Creative Capital is your Oklahoma SBA lender for both 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.