SBA 504 Loan Program
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Courtside Sports Bar & Grill, Dubuque, IA |
The SBA 504 Loan Program is a program for the Federal Small Business Administration with the goal of helping American small businesses grow while providing benefits to communities through tax base expansion, business growth, and job creation. Loans are available for all types of small, for-profit businesses for purchase or renovation of capital assets including land, buildings and equipment.
Eligibility
- Organized, for-profit business located in the state of Iowa
- Net worth of $7 million or less
- Business owner must be a US citizen or resident alien with a green card
Loan Amounts
- Minimum: $50,000 with no limit on project size
- Maximum: $1,500,000
- Limited to 40% of total project size
- If project falls within SBA public policy goal, maximum is increased to $2,000,000
- If project falls within SBA public policy goal, maximum is increased to $4,000,000
Uses of Loan Proceeds
- Fixed asset acquisition or expansion including land, building, and equipment
Advantages
- Low down payment – as low as 10%
- Long term SBA loans are for 10-20 years
- Fixed, low interest rate
- Mortgage payment amount is fixed for 10-20 years
Typical Loan Structure:
Entity |
Loan Amount | % of Project | Security |
Lender |
$500,000 | 50% | 1st Deed of Trust |
CDC/SBA |
$400,000 +fees | 40% | 2nd Deed of Trust |
Borrower |
$100,000 | 10% | |
| Total | $1,000,000 | 100% |
Recently Approved Projects
Since 1983, over 115 SBA 504 loans have been approved representing financing of over $38,832,200 and resulting in the creation or retention of over 4,344 jobs.
- $66,000 to Courtside, Inc of Dubuque
- $79,000 to Dan Lansing Construction of Dubuque
- $174,000 to SJD, Inc. Happy Joe’s of DeWitt
- $228,000 to Summit Building Systems of DeWitt
- $257,000 to Carlisle Ryan Digital Services, Inc. Dubuque
- $372,000 to Burbach Investment LLC, Summit Building Systems of DeWitt
- $378,000 to X-L Specialized Trailers of Manchester
- $443,000 to Iowa Can Company of Durant
- $629,000 to Bruggeman Lumber, Inc of Sand Springs
- $1,145,000 to Wall leasing, X-L Trailers of Manchester
- $4,000,000 to Mi-T-M Corporation of Peosta
$8,580,000 Total for 2005-2006