There are times when traditional lending methods just don't fit. The SBA 504 Loan Program is a great alternative for clients who both need and deserve a good finance package but have a hard-to-fund project. Caprock Business Finance Corporation, a nonprofit, SBA regulated Certified Development Company (CDC), can help you serve your client and meet your institution's funding requirements. By partnering with Caprock, you can offer the SBA 504 Loan Program at half the risk of traditional loans while retaining all the benefits.
You are able to assist more customers by leveraging your lending capacity across more borrowers.
Partnering with an SBA 504 loan lowers your credit risk because you get a 1st lien position at 50% or better loan-to value ratio.
Industry exposure is reduced and you gain the ability to finance larger projects. Regulatory concerns will be reduced on your bank's balance sheet.
Core earnings are strengthened because pricing of your loan is made at the bank's discretion. Fees and interest can also be be earned on the interim loan.
The SBA 504 loan's low fixed rate can be an incentive to attract and gain new customers.
How can the funds be used?
Buy owner-occupied commercial real estate
Build owner-occupied commercial real estate
Renovate or expand owner-occupied commercial real estate
Purchase equipment or machinery for the business
Cover professional fees, such as title insurance fees; architect, engineering, legal or accounting fees; environmental impact report fees; appraisal fees and municipal charges
Repay interim financing costs
Refinance conventional commercial real estate and equipment loans when expansion of the business is involved
504 loans are available for up to 40 percent of the total project cost on the above items.
If you are interested in the SBA 504 Loan Program, the first step is to determine if your client is eligible and can meet the SBA 504 Loan requirements. Please give us a call if you would like more information or would like to schedule a meeting.