The SBA 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. It uses Certified Development Companies, which are non-profit corporations set up to contribute to the economic development of their communities. CDCs work with the SBA and private-sector lenders to provide financing to small businesses. There are about 270 CDCs nationwide, each covering a specific geographic area. Typically, a SBA 504 loan project consists of a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped.* The CDC loan is typically made for a longer term and a lower fixed rate than would be available through a private lender.
Click here to visit the Small Business Administration’s website and learn more about this program:
Since providing superior service to our business clients means more than just making loans, Capital Bank networks regularly with a wide range of non-profit organizations that provide entrepreneurial counseling, technical assistance, business planning classes and more. By keeping connected in these support organizations, Capital Bank is able to help its business clients access a full range of business support services at little to no cost.
*Source: U.S. Small Business Administration website