SOUTHERN
COLORADO
ECONOMIC
DEVELOPMENT DISTRICT
Business Lending Center
Your Small business has big plans, big ideas and big needs. When a conventional loan doesn't work for you, an SBA 504 Loan may very well be what you need. The SBA's 504 program gives small business owners access to both the lowest possible fixed rates and minimum cash requirements that large businesses have through the bond markets. Maybe we should talk -The Business Lending Center is a registered trade name for the SCEDD Development Company, which is a Certified Development Company under Title V of the Small Business Investment Act of 1958, amended in 1980. We have been helping small businesses in our 24 county area since 1983, and have helped create over 1,500 new jobs. Today, we are preparing to do even more as the outlook for new small businesses increases in Southern Colorado.
About our loans
The Business Lending Center offers financing to qualified borrowers for owner-occupied real estate projects and equipment loans. SBA requires a participating lender in a first lien position, usually for 50% of the project. We will then normally place the SBA into a second lien for 35% - 40% of the project. That leaves the borrower with a low 10% - 15% cash requirement.
Since we are placing the first lien holder in a very favorable position, rates are usually quite low. SBA's rates are typically lower than the first lien holder's.
That means you not only get a minimum cash requirement, but you also get rock-bottom overall rates. Participating lenders are enthusiastic about their involvement because it opens doors to business they might otherwise miss and helps them help you. Add to that the ability to customize financing to special needs, and you can see why this program really works!
Funds can be used for:
Purchasing land and commercial, industrial or retail buildings
Construction and/or renovating
Site improvements
Purchase of equipment
Terms and Conditions
20 year term for real estate loans.
10 year term if equipment only
Rate is fixed for the term and set at closing by the sale of U.S.
Treasury-backed debentures.
Minimum SBA loan of $50,000
Maximum SBA loan of $1,300,000.
Restrictions that Matter
Building primarily owner-occupied
Businesses must be for-profit and not based on landlord-tenant
relationships.
Personal guarantees from all owners of 20% or more of the business.
Must retain and/or create new jobs.
Must have solid credit background.
No straight restructuring of debt.
Collateral Requirements
Participating lender will be in first lien position. SBA will have a second lien. Loan-to-Value ratios can be as high as 95% in some cases. Liens on additional collateral may be considered necessary.
Business Lending Center works with banks throughout the State of Colorado
NOTICE
IMPORTANT INFORMATION ABOUT IDENTIFICATION PROCEDURES WHEN OBTAINING A 504 LOAN
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all Certified Development Companies to obtain, verify, and record information that identifies each person who applies for a 504 Loan.
What this means for you: When you apply for a 504 Loan, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also as to see your driver's license or other identifying documents.
Southern Colorado Economic Development District (SCEDD)
1104 N. Main St.
Pueblo, CO 81003
(719) 545-8680 - (719) 545-9908 Fax
Toll Free 877-252-7297