Rachel Edgar

Twin Cities-Metro CDC

TCM CDC was certified in 1990 by the U.S. Small Business Administration (SBA). TCM has assisted thousands of small business owners, representing projects totaling in excess of one billion dollars, through utilization of the SBA's 504 loan program. The SBA 504 loan program, in combination with the participation of financial institutions, provides financing for the acquisition or expansion of owner-occupied commercial real estate or for the purchase of capital equipment. Key advantages of the SBA 504 Loan Program include: *Low down payment - Down payment is typically 10% of the total project cost. *Longer repayment term - Real Estate Loans have a 20- or 25-year term. *Low interest rate fixed for entire term of Loan. MAXIMUM LOAN SIZE INCREASE Both the SBA 504 and 7(a) loan programs have been granted a permanent increase in lending authority with loan limits increased significantly to $5 million for standard projects and up to $5.5 million for 504 projects made to manufacturers or for projects qualifying under the Energy Efficiency program. DEBT REFINANCING Loans that were used to finance fixed assets like real estate or equipment are eligible to be refinanced with an SBA 504 loan. Eligible loans for refinance include existing SBA 504 or 7(a) loans. The SBA 504 program also has the ability to provide cash out for working capital when refinancing an existing loan.