For small businesses looking to expand, it can be difficult to know where to turn for available financing. The U.S. Small Business Administration (SBA) CDC/504 Loan just might be the right program. The 504 program is about helping a small business purchase the assets they need to take their business to the next level. This allows companies to save money while financing such purchases as real estate or equipment with longer loan terms that are backed by Uncle Sam.
Applying for any government loan can be a daunting task. But, working with lenders knowledgeable on the ins and outs of the process can be helpful in reducing the paperwork and overall complication— getting your loan to you faster. “Here at Capital Bank, what we bring to the table is a strong partnership with our business clients and a niche expertise in SBA loans,” says Scot Browning, President. “Our performance in SBA lending earned us the ranking of the top two producers among the top community banks in the Washington DC Metropolitan area*”.
Entrepreneur magazine pointed out the value of a bank partner to help businesses with the bureaucracy involved and the complications inherent to any project with many different organizations trying to work together. “We help businesses navigate the complex application process for the 504 program as well as offer loans to fit the private lender requirement,” says Browning.
The SBA’s CDC/504 Program is designed to encourage growth of small businesses by financing the purchase of fixed assets such as real estate or equipment. A business must be able to put up 10-15 percent of the project costs; SBA provides a loan for 40 percent that is administered by a local CDC (Certified Development Company), a non-profit organization. A bank or other lender is needed to finance the remaining 50 percent.
Businesses can access up to $5.5 million depending on the approved project. According to the SBA District Director for the Washington Metropolitan Area, 504 loans have supported more than $1.1 billion in area investment over the past four years.
“It’s all about supporting our clients to grow and sustain their businesses,” says Browning. “We’re excited to work with this program and we encourage small businesses to look into what the SBA 504 loan program can do for them.”
