504 Loan Program

Description

A direct loan program funded through the SBA for long- term fixed assets.

Use of Funds

Land, buildings, renovations, long term equipment, etc.

Financing Method 

Private lenders provide 50% of the financing with the 504 providing up to 40% subordinate financing. The remaining 10% is provided by the borrower.

Qualification

Most "for- profit" companies located in Santa Barbara, San Luis Obispo, Monterey and Ventura Counties will qualify.

Maximum Amount

$1,500,000 ( $2,000,000 in certain municipalities).

Maturity

10 and 20 years

Interest Rate

Tied to the U.S. Treasury rates.

Collateral

Generally limited to the project being financed.

Fees

1.5% origination fee and other fees added to the project costs to be financed.