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SBA 504 Debentures

SBA 504 Loan Program Information


SBA 504 Debentures

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

Ineligible Projects:
  • Working capital
  • Refinancing

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:
Bank 50% 1st mortgage
CDC 40% 2nd mortgage
Equity 10%  

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.

  

Download the application
There will be a $250 Non-Refundable Application Fee.

SBA 504 Loan Fact Sheet

 


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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