Grow Your Northeast Ohio Business with SBA 504
Small business is the backbone of our Northeast Ohio economy—but getting a traditional bank loan in today’s market can be a challenge. Even businesses with a positive track record might not meet stringent lending requirements. There’s a solution: the SBA 504 loan program through Small Business Capital Corp.
Lenders can work directly with Small Business Capital Corp. as a partner, and we handle all administrative legwork to process the loan. With more than 200 loan approvals and an excess of $72 million in loan dollars distributed, we are a trusted source of growth capital for Northeast Ohio small businesses.
What is the SBA 504 Loan Program?
The SBA 504 loan program offers financing for major assets like buildings and equipment. These loans are facilitated through SBA-certified community development corporations (CDCs) like Small Business Capital Corp. We work directly with banks and business owners to complete the loan process
• Ten- and 20-year loans are available.
• Access long-term, fixed-rate financing that’s usually only available to larger corporations.
• Usually, Small Business Capital Corp. provides 40% of the financing, the bank provides 50%, and the small business provides 10%.
• Virtually all for-profit small businesses with a net worth of less than $15 million are eligible.
• The SBA 504 loan program can lend up to $5 million or $5.5 million when meeting a community development goal or a public policy objective.
• Proceeds from SBA 504 loans must be used for fixed-asset projects such as: land acquisition and improvements (grading, street improvements, utilities, parking lots, landscaping); new facility construction; renovations and build-outs on existing buildings; machinery, medical equipment and office equipment.
• Businesses need to occupy at least 51% of purchased real estate.
• SBA 504 loans cannot be used for working capital or inventory. Some debt refinancing is permitted under certain circumstances.
• Loan Refinancing – The SBA will be announcing a new loan-refinancing program in the summer of 2016.
How Does Small Business Capital Corp. Serve Businesses?
As a CDC, we work directly with business owners and banks, and manage the SBA 504 loan application process. That includes:
• Closing and servicing SBA 504 loans;
• Providing small businesses with financial and technical assistance; and
• Ensuring that small businesses meet agreed-upon goals (job creation, etc.) determined by the SBA 504 loan.
Learn more about Small Business Capital Corp. and the SBA 504 loan program. Call us at 440.525.7705 or email us at This email address is being protected from spambots. You need JavaScript enabled to view it..
