PCF Real Estate Application
504 Program
FINANCE YOUR COMMERCIAL BUILDING
The SBA's 504 Loan Program allows you, the business owner, to purchase an owner-occupied industrial, commercial building or fixed assets at below-market interest rates with as little as a 10% down payment. The loan proceeds may be used to purchase or remodel an existing building or to construct a new facility.
BORROW UP TO 90%*
Your Business can borrow up to 90% of the project cost or appraised value of the property, whichever is less.
TYPICAL SBA 504 LOAN STRUCTURING
- Financing for the first 50% of costs: The bank provides a First Trust Deed (TD) loan for 50% of the project cost.
- Financing for the next 40% of costs: Certified Development Corporation (CDC)/SBA provides a second TD loan for 40% of the project cost. While the CDC/SBA audits funding for its loan from the sale of a debenture, the bank provides an interim loan for the amount of the CDC/SBA Second TD loan.
- Financing for the final 10% of project costs: The borrower provides 10% of the total project cost.
TERMS, RATES, AND FEES FOR SBA 504 LOANS
- Bank portion of your Small Business's SBA 504 loan can have a 10- to 25-year maturity, with an amortization period of up to 25 years at the current market rate.
- The CDC/SBA loan will be fully amortized over a 25-year term. The interest rate is fixed and based on the rate of the sold debenture. A declining prepayment penalty applies.
APPLYING IS SIMPLE
When applying for an SBA loan - as with any loan - you are asked to fill out a standard application and provide specific documentation. We will work with your accountant, and do all of the analysis, packaging, and interface with the CDC/SBA for you.
APPROVAL TURNAROUND - 30 TO 60 DAYS
A typical SBA 504 loan undergoes two approval processes. PCF reviews the application. If the bank approves it, the application is then submitted to the CDC for approval and the accompanying SBA approval. The complete procedure from application submission to disbursement of funds takes approximately 30 to 60 days, depending on the complexity of the loan.
At PCF, we serve our clients with promptness and expertise. We not only believe an SBA loan is a great source of funding for small businesses, but we put that belief into action. We're extremely knowledgeable in the field, and try to match our clients' financial needs to the most appropriate program available.
