Why So Cal CDC?
SoCal CDC, a Certified Development Company (CDC), offers an alternative to conventional financing through the U.S. Small Business Administration's (SBA) 504 Loan Program. Through the 504 loan program, we are able to offer fixed rates for capital expenditures with up to 90% financing, while lessening the lending risks for banks. The SBA portion can finance up to 40% of a project's fixed assets, lowering the injection rate for small business owners. Contact us today for more information.
SBA 504 Lender Benefits:
Reduced risk and lower commercial lender portion with 50% loan-to-value
Finances a wide variety of projects including machinery and equipment
Creates unique marketing and networking opportunities to expand future markets
Preserves working capital, allowing cash to remain in deposit accounts
SBA 504 Financing Structure
Source |
Project Costs |
Lien |
Funding Limits |
Rate |
Term Real Estate |
Term M&E |
Financial Institution |
50% |
1st |
No Limit |
Market |
10 Years or Longer |
7 Years or Longer |
SBA 504 |
40% |
2nd |
Up to 5.5 M |
Fixed |
25 Years |
10 Years |
Borrower |
10% |
N/A |
N/A |
N/A |
N/A |
N/A |
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