The SBA 504 loan program provides long-term fixed-rate financing for small businesses to purchase commercial real estate and equipment. A 504 loan consists of financing from a private lender covering 50% of the project cost, an SBA-backed loan for 40% of the cost, and a 10% equity contribution from the business owner. The SBA loan has a fixed rate for 10 or 20 years and is secured by a junior lien position, while the private lender loan has a term of 10-25 years at a market rate with the first lien position. The program can finance up to 90% of a project with no balloon payments and is intended to promote economic development and job creation/retention.

1. CAPITAL FUNDING, Your SBA 504 Partner
THE SBA 504 PROGRAM
THE FIXED RATE LOAN
The 504 The objective of the 504 Program is to achieve community economic
Objective development through job creation and retention by providing long-term fixed
asset financing to small business owners.
The 504 A complete 504 loan package is a combination of at least three sources:
Partnership SBA, the Greater Sacramento Certified Development Corporation dba Capital
Funding, and a local lender.
An example of a $1,000,000 SBA 504 loan is provided below:
Local Lender SBA 504 Financing Down Payment
%of Project 50% 40% 10%
Security 1st
Lien 2nd
Lien
$ Amount $500,000 $400,000 $100,000
Interest Rate Market Rate Below Market Rate
Term 10-25 Years 20 Years
Amortization 20-30 Years 20 Years
Local Lender provides 50% of the project cost/purchase price, with the interest
rate being fixed or variable, with a minimum term of 10 years.
The SBA may finance up to 40% or $5,000,000 ($5,500,000 for manufacturing
companies and/or new energy efficient buildings) in the form of a debenture to
any approved project. The interest rate will be fixed for the term of the loan.
The Down Payment is provided by the Business Owner receiving financial
assistance. A down payment of at least 10% of the total project cost is required in
the form of cash or equity.
Debentures The SBA portion of the financing consists of a debenture, which is a type of bond
pooled through a certificate mechanism and sold publicly to investors (e.g.,
pension funds, insurance companies, or private individuals). Debentures are 100%
guaranteed by SBA with a “Full Faith and Credit Guarantee” issued by the U.S.
Treasury.
Terms 10 or 20 years are available.
Thursday, February 19, 2015 UPDATED
SBA MASTER DOCS/Marketing/sba 504 program with loan rates

2. GREATER SACRAMENTO CDC dba CAPITAL FUNDING
**YOUR SBA-504 PARTNER**
Program Highlights: - Up to 90% financing.
- Fully amortized loans, no call dates.
Use of Funds: - Purchase, construction, or renovation of commercial real
estate and/or purchase of equipment (10+ year life)
- Fixed asset financing for franchises.
Financing Structure - 50% Bank first deed of trust
- 40% SBA-504 second deed of trust
- 10% Borrower down-payment in most cases.
Terms: - Up to 20 years for Real Estate, fully amortized, no call dates.
- Up to 10 years for Equipment, fully amortized, no call dates.
Interest Rate: - Bank: Fixed or Variable.
- SBA: Fixed Below Market.
Eligibility Highlights: - Net worth of less than $15 million.
- Net profit of less than $5 million average over last two years.
- Job creation requirements depending on project size.
- Owner to occupy 51% of existing building or 60% of a new
construction project.
Prequalification: Prequalification services available at no cost.
For More Information Call Ray, Dennis, Glen, Jerry or Bart : (916) 339-1096
Web site: GSCDC.COM
Thursday, February 19, 2015 UPDATED
SBA MASTER DOCS/Marketing/SBA 504 with loan rates