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#2 <br />¨³¸ ®¥  ¬²¤¸ <br />%¢®­®¬¨¢ $¤µ¤«®¯¬¤­³ <br />0±®©¤¢³ &¨­ ­¢¨­¦ 4®®«² <br /> <br /> <br /> <br /> <br /> <br />SMALL BUSINESS ADMINISTRATION 504 LOANS <br /> (page 2/2) <br /> <br />Approval Process: The application is reviewed by the Corporations Board of Directors and the SBA; <br />a decision is typically made within 30 days of submission of a completed <br />application. Depending on project needs, additional loans may be made in <br />conjunction with the SBA 504 financing. <br /> <br />What SBA 504 Program Offers To Lenders: <br /> <br />Low collateral risk <br /> <br />No interest rate risk <br /> <br /> <br /> <br />Lower credit risk <br /> <br /> <br />What The SBA 504 Program Offers To Borrowers: <br /> <br />Longer than conventional term <br /> <br />Reasonable cost <br /> <br />Lower than conventional payment <br /> <br />Low down payment <br /> <br />Insulation against rate risk <br /> <br /> <br />Sba 504 Program Highlights: <br /> <br />Fixed asset financing <br /> <br />Subordinate financing <br /> <br />Fixed rate financing <br /> <br />Takeout financing <br /> <br />Long Term: 10 or 20 years <br /> <br />For- <br /> <br />Low down payment <br /> <br />Credit worthy borrowers <br /> <br /> <br />Typical SBA 504 Deal: <br /> <br />st <br /> Private Lender 50% (1 mortgage) <br />nd <br /> SBA 504 40% (2 mortgage) <br /> Local injection (equity) 10% <br /> Total project costs: 100% <br /> <br /> <br /> <br /> <br />