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SBA 504 Loan Program Information
Invest Atlanta provides financial and technical assistance to small, minority and female-owned businesses to expand and/or relocate in the city. The SBA-504 Loan Program offers businesses a unique source for 90% financing. Loans are available through certified development companies certified under the U.S. Small Business Administration 504 Certified Development Corporation Program.
Eligible Projects:
- Owners must occupy at least 51% of space.
- Acquisition of fixed assets (i.e. land and buildings)
- New construction (67% occupancy)
- Renovation
- Machinery and equipment
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Ineligible Projects:
- Working capital
- Refinancing
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Amount: Loans up to $1.5 million or 40% of total project costs (up to $2 million if the company meets a public policy goal). 504 loans for “small manufacturers” may be made up to $4 million.
Typical Transaction:
| Source of funds |
Amount |
Collateral |
| Bank |
50% |
1st mortgage |
| CDC |
40% |
2nd mortgage |
| Equity |
10% |
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Term of Loan: Ten (10) or Twenty (20) years real estate or a combination of real estate and machinery/equipment.
Interest Rate: Fixed for term of loan, based on 10-year Treasury Note, priced monthly. Loans funded through private sale of debentures.
Assumability: The SBA-504 portion is assumable.
Eligible Borrowers: Most for-profit businesses with less than $6 million in net worth; less than $2 million after tax profits, or less than 500 employees.
Fees: Processing and servicing fees are paid out of debenture proceeds.
Prepayment: 10% penalty the 1st year, decreasing by 1% to the 10th year.
Please return all completed applications to:
Cathy Brackett
Administrative Assistant
cbrackett@investatlanta.com
Phone: 404-880-4100
Fax: 404-880-9333
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