If you are an existing business in need of financial assistance with acquisition, construction, or long-term fixed asset financing, we at the Certified Development Corporation of the Southwest (CDCSW) are here to help you "grow your way." The SBA 504 Loan program is our most powerful tool to help you grow your business. What sets us apart from other financing programs? The 504 Loan Program is all
we do. This insures that we deliver quality service and quick results so you can reach your potential growth. The SBA 504 loan program provides growth financing with a low down payment. Coming up with a down payment of 20% or more plus closing costs usually knocks many small businesses out of the running for expansion financing. For a healthy business whose expansion plans call for the investment and use of real estate or equipment, there is a way to qualify for 90% financing through the SBA 504 Loan Program. The 504 Loan Program offers the following key advantages:
Low down payment which conserves a businesses’ operating capital;
Competitive, fixed interest rate thereby stabilizing the company’s interest expense for fixed assets;
Long term financing which matches the asset being financed with the cash flow generated by the asset. The participating bank benefits by providing 50% of the permanent financing for the fixed asset and receives a 1st lien position on the entire project being financed. The SBA 504 permanent financing which can be up to 40% of the total eligible project, subordinates to the participating bank in a 2nd lien position. The Borrower contributes as little as 10% including eligible closing costs. The SBA financing portion, called Debentures (bonds), are issued by CDCSW and sold in the private bond market to fund the 504 portion of the financing. These bonds are fully guaranteed by the US Small Business Administration.